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Full text of "Minutes"

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SAN FRANCISCO 
PUBLIC LIBRARY 

REFERENCE 
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SAN FRANCISCO PUBLIC LIBRARY 



3 1223 05718 3353 



Digitized by the Internet Archive 
in 2013 



http://archive.org/details/7minutes1998sanf 



pOARD of SUPERVISORS 







^NOTICE OF CANCELLED MEETING 

f INANCE COMMITTEE 



401 Van Ness Avenue, Room 308 

San Francisco 94102-4532 

554-5184 



OOClSfeWS DEPT. 

OCT 2 9 1998 

can FRANC -> 



PUBLIC 



SAN FRANCISCO BOARD OF SUPERVISORS 



NOTICE IS HEREBY GIVEN That the regularly scheduled Finance 
Committee meeting of Wednesday, November 4, 1998, at 1:00 p.m., at 
401 Van Ness Avenue, Room 410, has beeh cancelled. 




Gloria L. Young 
Clerk of the Board 



3 1223 05718 3353 




2" 



City and County of San Francisco 

Meeting ^genda 

, Finance Committee 

Members: Supervisors Mabel Teng, Barbara Kaufman, Gavin Newsom 
Clerk: Joni Blanchard 



Veterans Building 

401 Van Ness Avenue, 

Room 308 

San Francisco, CA 

94102-4532 



Monday, November 09, 1998 



11:00 AM 



Special Meeting 



Veterans Building, 401 Van Ness Ave., 
Room 410, San Francisco, CA 94102 



SPECIAL AGENDA 



981799 [Parking Ticket Amnestj Program] Supervisors Teng, Yaki, 

Katz. Brown, Leno, 
Medina 

Resolution urging the Department of Parking and Traffic to implement a 1 5 day amnesty program to 
waive penalties on outstanding parking tickets by reducing the amount due to an amount equal to the 
original fine; and urging that the amnesty program have a simple and easy application process; and 
urging the Department of Parking and Traffic to implement this amnesty program from December 1st 
through December 15th 1998 on tickets dating back as far as October of 1993. 

10/26/98, RECEIVED AND ASSIGNED to Finance Committee. 



981503 [Campaign Consultant Fees] 

Ordinance amending Administrative Code by amending Section 16.543(c) to add a fee schedule for 
campaign consultants and to require the Ethics Commission to evaluate the fee schedule in 1 999 and 
propose any amendments to the fee schedule to the Board of Supervisors for approval by December 
1, 1999. (Ethics Commission) 

(Amends Section 16.543(c).) 

9/16/98, RECEIVED AND ASSIGNED to Finance Committee. 

10/7/98, CONTINUED TO CALL OF THE CHAIR. Heard in Committee. Speakers: Harvey Rose, Budget 

Analyst; Ginny Vida, Ethics Commission - support. 

Chair may entertain a motion to send this item as a committee report for consideration by the 

Board of Supervisors at its meeting of November 9, 1998. 



981508 



[Living Wage Task Force] Supervisor Kaufman 

Resolution establishing an advisory task force to evaluate the impact of living wage proposals on San 
Francisco's economy, businesses, non-profit organizations and residents and setting forth the 
membership and duties of the task force. (Livmg Wage Task Force) 



9/14/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 10/14/1998. 



DOCUMENTS DEPT. 

NOV n 9 1998 

SAN FR/ 
PUBLIC LIBRARY 



City and County of San Francisco 



Printed at 4:33 PM on 11/4M8 



7 45243 SFPL: ECONO JRS 
206 SFPL 11/22/00 77 



Finance Committee 



Meeting Agenda 



Monday, Sovember 09, 1998 



IMPORTANT INFORMATION 

NOTE: Persons unable to attend the meeting may submit to the City, by the time the proceeding 
begins, written comments regarding the agenda items above. These comments will be made a part of 
the official public record and shall be brought to the attention of the Board ofSupennsors. Any 
written comments should be sent to Committee Clerk, Finance Committee, San Francisco Board of 
Supervisors, 401 Van Ness Avenue, Room 308, San Francisco. California 94102 by 5:00pm on the 
day prior to the hearing. Comments which cannot be delivered to the committee clerk by that time 
may be taken directly to the hearing at the location above. 



Adjournment 



LEGISLATION UNDER THE 30-DAY RULE 

Rule 5.40 provides that when an ordinance or resolution is introduced which would CREATE OR 
REVISE MAJOR CITY POLICY, the committee to which the legislation is assigned shall not consider 
the legislation until at least thirty days after the date of introduction. The provisions of this rule shall 
not apply to the routine operations of the departments of the City or when a legal time limit controls 
the hearing timing. In general, the rule shall not apply to hearings to consider subject matter when 
no legislation has been presented, nor shall the rule apply to resolutions which simply URGE action 
to be taken. 



981707 [Gift Certificates for Payment for Parking and City Garages] Supervisor Kaufman 

Ordinance amending Administrative Code by amending Section 2A. 1 80 to grant authority to the 
Department of Parking and Traffic to sell gift certificates for payment for parking at city garages. 

(Amends Section 2A.180.) 

10/13/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 1 1/1 3 '1998. 



981796 [ATM Surcharges] 



Supervisors Ammiano. 
Bierman. Medina. Yee 

Ordinance amending Police Code by adding Section 648. 1 to prohibit a financial institution from 
imposing a surcharge on non-account holders who use ATMS of the financial institution that are 
located in San Francisco. 

(Adds Section 648.1.) 

10/26/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 1 1 25 1998 

981810 [New Jobs Tax Credit Expansion] Supervisors Kaufman. 

Katz. Leno 

Ordinance amending Municipal Code Part III, Sections 906B and 1005.6 to add two additional years 
of tax credits for new jobs created on or after January 1, 1998. 

(Amends Part III. Sections 906B and 1005.6.) 

10/26/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 1 1 25 1998. 



City and County of San Francisco 



Printed at 4:33 PM on ll/*m 



Finance Committee 



Meeting Agenda 



Monday, November 09, 1998 



7. 981812 [Surplus Business Tax Revenue Credit) Supervisors Kaufman, 

Leno 

Ordinance amending Municipal Code Part III by adding Section 906E, creating a S500 payroll 
expense tax credit to taxpayers for any taxable year ending within a fiscal year of the City and 
County of San Francisco immediately following a fiscal year for which the City and County has 
surplus business tax revenue. 

(Adds Section 906E.) 

10/26/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 1 1/25/1998. 

8. 981813 [Surplus Business Tax Revenue Credit] Supervisors Kaufman, 

Leno 

Ordinance amending Municipal Code Part III by adding Section 1005.9, creatmg a $500 business tax 
credit to taxpayers for any taxable year ending within a fiscal year of the City and County of San 
Francisco immediately following a fiscal year for which the City and County has surplus business tax 
revenue. 

(Adds Section 1005.9.) 

10/26/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 1 1/25/1998. 

9. 981844 [Union Square Business Improvement District] Supervisor Kaufman 

Resolution declaring the intention of the Board of Supervisors to establish a property and business 
improvement district to be known as the "Union Square Business Improvement District," to order the 
levy and collection of a multi-year assessment, and setting a time and place for a public hearing 
thereon (January 25, 1999 at 3:00 p.m. or as soon thereafter as the matter may be heard). 

1 1/2/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 12/2/1998. 

10. 981845 [Business Improvement District Ballot Procedures] Supervisor Kaufman 

Resolution establishing ballot procedures governing ballots cast by property owners of property 
located within the boundaries of a proposed business improvement district to be known as the "Union 
Square Business Improvement District." 

1 1/2/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 12/2/1998. 

11. 981848 [Assessment Appeals Board Membership] Supervisor Kaufman 

Ordinance amending Administrative Code Sections 2B1 through 2B.8 and 2B.10 through 2B.14 to 
increase the number of Assessment Appeals Board members, to establish eligibility requirements for 
Assessment Appeals Board members, to establish criteria for selection of Assessment Appeals Board 
panels and hearing officers, to establish guidelines for joint meetings of the Assessment Appeals 
Boards, and to make nonsubstantive clarifying revisions. 

(Amends Sections 2B1 through 2B.8 and 2B.10 through 2B.14.) 

1 1/2/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 12/2' 1998. 



Watch future agendas for matters. 



City and County of San Francisco 



Printed at 4:33 PM on ll/i/98 



Finance Committee Meeting Agenda Monday, Sovember 09, 1998 



Disability Access 



Both the Committee Room (Room 410) and the Chamber (Room 404) are wheelchair accessible. The closest 

accessible BART Station is Civic Center, four blocks from the Veterans Building. Accessible MUNI lines serving this 

location are: #42 Downtown Loop, the #71 Haight^Nonega, the F line to Market and Van Ness and the METRO 

stations at Van Ness and Market and at Civic Center. For more information about MUNI accessible services, call 923- 

6142. 

There is accessible parking in the vicinity of the Veterans Building adjacent to Davies Hall and the War Memorial 

Complex. 

Assitive listening devices are available for use in the Meeting Room and the Board Chamber. A device can be 
borrowed prior to or during a meeting. Borrower identification is required and must be held by Room 308 staff. 

The following services are available on request 48 hours pnor to the meeting or hearing: 

For American sign language interpreters or the use of a reader during a meeting, contact Violeta Mosuela at 
(415)554-7704. 

For a large print copy of an agenda, contact Moe Vazquez at (415; 554-4909. 

In order to assist the City's efforts to accommodate persons with severe allergies, environmental illness, multiple 
chemical sensitivity or related disabilities, attendees at public meetings are reminded that other attendees may be 
sensitive to various chemical based products. Please help the City to accommodate these individuals. 

Government's duty is to serve the public, reaching its decisions in full view of the public. Commissions, boards, 
councils and other agencies of the City and County exist to conduct the people's business. The Sunshine Ordinance 
assures that deliberations are conducted before the people and that City operations are open to the people's review For 
more information on your rights under the Sunshine Ordinance (Chapter 67 of the San Francisco Administrative Code) 
or to report a violation of the ordinance, contact the Sunshine Ordinance Task Force at 554-485 1 . 






City and County of San Francisco 4 Printed at 4:33 PM on 11/4J99 



FINANCE COMMITTEE 

S.F. BOARD OF SUPERVISORS 

VETERANS BUILDING 

401 VAN NESS AVENUE. ROOM 308 

SAN FRANCISCO. CA 94102 

IMPORTANT HEARING NOTICE!!! 



Public Library, Gov't Information Ctr.. 5 th Fir. 
Attn: Susan Horn, Dept. 41 



:■' 



n 



CITY AND COUNTY 




OF SAN FRANCISCO 



BOARD OF SUPERVISORS 



BUDGET ANALYST 



DOO! JMF.NTS DEPT. 

Nov o g me 

SA' 

PUBLiC LIBRARY 



1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



November 5, 1998 
TO: finance Committee 

FROM: , Budget Analyst ***•—**-«***.■•*' go* fi-t^.^ of ■ 
SUBJECT: November 9, 1998 Special Finance Committee Meeting 
Item 1 - File 98-1799 



Item: 



Description: 



Resolution urging the Department of Parking and Traffic 
(DPT) to implement a 15 day Amnesty Program to waive 
penalties on outstanding parking citations, charging only 
the original fine amount and urging that the Amnesty 
Program utilize a simple and easy application process, 
and urging DPT to implement this Amnesty Program 
from December 1 through December 15, 1998 on 
delinquent parking citations dating as far back as October 
1 of 1993. 

Under the proposed Amnesty Program, individuals would 
use postcards to apply for participation in the Amnesty 
Program. The postcards would be made available at City 
Hall, Public Libraries, DPT offices and other convenient 
City locations. The returned postcard would have to be 
postmarked from December 1 through December 15, 1998 
in order to qualify for participation. DPT would mail each 
applicant a bill showing the original fine amount for each 
delinquent citation and the total amount due for all 
citations, exclusive of penalties. Full payment for all 
citations would be due within 20 days in order to receive 
amnesty from the penalties. 



Memo to Finance Committee 

November 9, 1998 Special Finance Committee Meeting 

According to Ms. Kathryn Hile of DPT, the last Amnesty 
Program for parking citations, which also provided for a 
waiver of penalties, was held by the City in 1993. At that 
time, unpaid delinquent parking citations had a total 
value of approximately $25 million. The total number of 
delinquent citations in 1993 is not known according to 
DPT. The 1993 Amnesty Program was advertised for two 
months and had a one month period of amnesty on 
citations issued up to five years prior to the Amnesty 
Program. Ms. Hile reports that approximately 80,000 
citations were paid during the 1993 Amnesty Program, 
which resulted in DPT collecting approximately $2.1 
million in previously uncollected citation revenue. Ms. 
Hile adds that DPT does not know the amount of the loss 
of revenue to the City that resulted from the waiver of 
penalties in the 1993 Amnesty Program. 

Ms. Hile reports that currently the City has 1.8 million 
unpaid delinquent parking citations with a total value of 
approximately $70 million. DPT estimates that the 
proposed Amnesty Program would result in 
approximately 10,000 participants paying 44,000 
citations, resulting in $1.2 million in revenues to the City 
from the delinquent parking citations. Ms. Hile estimates 
that such a collection rate would result in the waiver of 
approximately $1 million in penalties which would not be 
realized by the City. 

Comments: 1. According to Mr. Shannon .Anderson of DPT, the 

reason, that the 1993 Amnesty Program collected $2.1 
million in unpaid parking citation fines out of a base of 
$25.0 million in delinquent parking citations (8.4 
percent), while the proposed Amnesty Program is 
projected to collect just $1.2 million out of a base of $70 
million in delinquent parking fines (1.7 percent), is that 
the 1993 Amnesty Program included: a) a targeted letter 
to citation recipients who owed the City $400 or more in 
delinquent citation fines; and b) amnesty was offered for a 
period of one month. This proposed Amnesty Program 
would be offered for 15 days only and DPT would not have 
time to include a targeted letter to delinquent citation 
recipients, according to Mr. Anderson. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

November 9, 1998 Special Finance Committee Meeting 

2. In July of 1998, the Board of Supervisors approved a 
contract between DPT and PRWT Services Inc. (PRWT) 
for a new parking citation processing and collection 
system, which will provide the City with more efficient 
methods for collection of parking citations. According to 
the proposed resolution, many citizens have expressed an 
interest in clearing unpaid parking citations before the 
new system goes into effect. 

3. Mr. Anderson reports that this proposed legislation 
could negatively effect revenue projections for the PRWT 
contract in an amount of up to $1,000,000, the estimated 
amount of penalties that will be waived if DPT 
assumptions are correct as to the number of projected 
participants in the proposed Amnesty Program. However, 
the loss of revenue due to the waiver of penalties could be 
partially offset if the Amnesty Program results in 
payment of delinquent parking citations that would not be 
otherwise collected in the future by PRWT. 

4. The FY 1998-99 total budget for Parking Fine 
Revenues, which are allocated to the Municipal Railway 
operating budget, is $56,483,502. According to Mr. John 
Madden, Assistant Controller, FY 1998-99 Parking Fine 
Revenues would not be adjusted at this time because of 
the uncertainty regarding the effect of the proposed 
Amnesty Program on total revenue collections. 

Recommendation: Approval of this proposed resolution is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

November 9 , 1998 Special Finance Committee Meeting 

Item 2 - File 98-1503 



Note: This item was continued to the Call of the Chair by the Finance Committee 
at its meeting of October 7, 1998. The Ethics Commission met on November 
2, 1998 to reconsider this campaign consultant fee proposal and is now 
recommending a change in the proposed fee schedule that is contained in 
this ordinance. The following report reflects the proposed Ethics 
Commission's recommendations, which will be introduced as an 
Amendment of the Whole at the November 9, 1998 Special Finance 
Committee Meeting. 



Department: 
Item: 



Ethics Commission 

Ordinance amending Article XII C of the San Francisco 
Administrative Code by amending Article XIIC, Section 
16.543(C) to add a fee schedule for campaign consultants 
and to require the Ethics Commission to evaluate the fee 
schedule in 1999 and propose any amendments to the fee 
schedule to the Board of Supervisors for approval by 
December 1, 1999. 



Description: 



In November of 1997, the voters approved Proposition G, 
the Campaign Consultants Ordinance, Article XIIC, 
Sections 16.540 to 16.547 of the Administrative Code. 
The ordinance defines a campaign consultant as "any 
person or entity that receives or is promised economic 
consideration equaling $1,000 or more in a calendar year 
for campaign consulting services", which are in turn 
defined as "participating in campaign management or 
developing or participating in the development of 
campaign strategy." Economic consideration is defined in 
the ordinance as "any payments, fees, commissions, 
reimbursements for expenses, gifts or anything else of 
value", or essentially the gross revenues, including gifts, 
received by the campaign consultant. The ordinance 
provides that campaign consultants who earn $1,000 or 
more in such gross revenue in a calendar year must 
register annually and report on a quarterly basis as to 
gross income received from clients and certain campaign 
expenditures. Those campaign consultants who earn less 
than $1,000 in a calendar year are exempt from the 
provisions of this ordinance. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

November 9 , 1998 Special Finance Committee Meeting 

Under this ordinance, the Ethics Commission is proposing 
annual fees to be paid by campaign consultants, including 
(a) registration fees and (b) client fees for each of the 
campaign consultant's clients. The Ethics Commission 
intends that these fees would defray part of the Ethics 
Commission's expenses to administer the Campaign 
Consultants Ordinance. The proposed fees must be 
submitted for approval by the Board of Supervisors no 
later than December 1 st for implementation during the 
following calendar year. 

In accordance with Proposition G, this ordinance would 
establish a schedule of fees to be charged to campaign 
consultants for Calendar Year 1999. Specifically, (a) 
campaign consultants having gross revenues of $1,000 or 
less per calendar year would be exempt from registration 
or payment of any fees; (b) campaign consultants with 
gross revenues of between $1,000 and $5,000 annually, 
would be required to pay a $50 annual registration fee 
and a $50 annual fee for each of the campaign 
consultants' clients; (c) campaign consultants with gross 
revenues of more than $5,000 but not more than $20,000 
per calendar year would pay a $200 annual registration 
fee and a $50 annual fee for each client: and (d) campaign 
consultants having gross revenues of more than $20,000 
per calendar year would pay a $400 annual registration 
fee and a $50 annual fee for each client. 

The proposed ordinance also requires the Ethics 
Commission to evaluate, on or after July 1, 1999, the fees 
established under this proposed ordinance, and to propose 
any changes in the fees for Calendar Year 2000. for 
approval by the Board of Supervisors by no later than 
December 1, 1999. If the Ethics Commission takes no 
action in 1999 regarding proposed fees for Calendar Year 
2000, then the fees provided for in the proposed ordinance 
for Calendar Year 1999 would remain in effect. 

Comments: 1. Proposition G, the Campaign Consultants Ordinance, 

required that the Ethics Commission propose a fee 
structure for approval by the Board of Supervisors by 
December 1 st for implementation during the following 
calendar year. According to Ms. Naomi Starkman of the 
Ethics Commission, there are no existing fees in place for 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

November 9 , 1998 Special Finance Committee Meeting 



campaign consultants for Calendar Year 1998. As 
previously noted, the proposed fees would be effective for 
Calendar Year 1999. 

2. According to Ms. Starkman, based on an estimated 35 
campaign consultants and a total of 70 clients, or an 
average of two clients for each campaign consultant, the 
Ethics Commission estimates that four campaign 
consultants would earn between $1,000 and $5,000 
during Calendar Year 1999; 14 campaign consultants 
would earn between $5,001 and $20,000 during Calendar 
Year 1999; and 17 campaign consultants would earn more 
than $20,000 during Calendar Year 1999. 

3. As shown in Attachment I provided by Ms. Starkman, 
the proposed fees are estimated to generate $15,580 in 
Calendar Year 1999 or approximately $7,790 in revenue 
for Fiscal Year 1998-99. 

4. The estimated $7,790 in revenues for Fiscal Year 1998- 
99 was not included in the budget of the Ethics 
Commission due to the lack of information available at 
the time the Ethics Commission's budget was prepared, 
according to Ms. Starkman. The proposed ordinance 
specifies that the fee revenues from campaign consultants 
realized by the Ethics Commission would accrue to the 
General Fund. 

5. As shown in Attachment II provided by Ms. Starkman, 
the administrative costs of the Ethics Commission to 
administer the Regulation of Campaign Consultants 
Ordinance is estimated at $28,928 for Calendar Year 
1999 or $14,464 for Fiscal Year 1998-99. According to Ms. 
Starkman, this $14,464 cost is not included in the Ethics 
Commission's Fiscal Year 1998-99 budget. The estimated 
shortfall for Fiscal Year 1998-99 to administer the 
proposed ordinance would be $6,674 (costs of $14,464 less 
revenues of $7,790). Based on estimated revenues of 
$7,790 and estimated costs of $14,464, the proposed 
revenues would recover approximately 54 percent of the 
costs. According to Ms. Ginny Vida of the Ethics 
Commission, the Ethics Commission plans to request a 
Supplemental Appropriation to cover these estimated 
costs of $14,464 for Fiscal Year 1998-99. Ms. Starkman 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

November 9 , 1998 Special Finance Committee Meeting 



reports that the proposed fee revenues of $7,790 would 
serve as a partial funding source for that Supplemental 
Appropriation, with the balance of $6,674 likely coming 
from the City's General Fund. 

6. As noted above, the proposed ordinance would recover 
approximately 54 percent of the costs to administer the 
proposed ordinance. According to Ms. Yida, the Ethics 
Commission recommends at least this cost recovery level 
because the Controller's statement in the voter's 
pamphlet for Proposition G said that the proposed 
ordinance "should not significantly affect the cost of 
government if the fees authorized to be charged cover all 
or most of the cost of administration by the Ethics 
Commission." Ms. Vida reports that, based on the 
Controller's statement, the Ethics Commission therefore 
felt that the campaign consultant fees should recover 
more than 50 percent of the costs of administration. 

7. According to Ms. Starkman, after receiving the final 
campaign consultant reports for FY 1998-99 and 
evaluating whether changes in the proposed fees are 
appropriate, the Ethics Commission could propose a 
revised fee schedule for Calendar Year 2000 for approval 
by the Board of Supervisors by no later than December 1, 
1999 in accordance with the Campaign Consultants 
Ordinance. Although these fees were originally 
anticipated to substantially recover the Ethics 
Commission's actual costs to administer the Campaign 
Consultants Ordinance, according to Ms. Starkman, the 
fees for Calendar Year 2000 would most likely be 
proposed at a level to recover an as-yet -undetermined 
percentage of the estimated costs, in order to maintain 
the fees at a reasonable level. 

8. Under the proposed ordinance's fee schedule, although 
the annual registration fee will van* from $50 to S400 for 
campaign consultants, depending on their level of gross 
revenues, all campaign consultants would be charged the 
same fee of $50 annually for each client, irrespective of 
the campaign consultant's gross revenues. According to 
Ms. Yida, these fees to be paid by the campaign 
consultants would most likely be passed on to the 
campaign consultant's clients. The proposed $50 per client 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

November 9 , 1998 Special Finance Committee Meeting 

fee is the same per client fee currently charged by the 
Ethics Commission for lobbyists. 

Recommendation: Approval of the proposed ordinance, as amended, is a 

policy matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



n L LdV.1 



55 PERCENT OF THE COST OF ADMINISTRATION COVERED BY FEES 



Filers Earning Between $1,000 and $5,000 
($50 registration fee and $50 client fee) 



Filers Earning Between $5,000 and $20,000 
($200 registration fee and $50 client fee) 





# of filers 


Recommended 
Fee 


Total 


Campaign 
Consultant 
Registration 


4 


S50 


$200 


Client 
Registration 


8 


$50 


$400 


No. days 


Late Filing 

Fine 


13 


$50 


$650 




2 


$100 


$200 










Annual (12 months total) 




$1,450 


Total for 6 months FY 98-99 




$725 





# of filers 


Recommended 
Fee 


Total 


Campaign 
Consultant 

Registration 


14 


S200 


$2,800 


Client 
Registration 


28 


S50 


$1,400 


No days 


Late Filing 
Fine 


13 


$50 


$650 




2 


$100 


$200 










Annual (12 months total) 




$5,050 


Total for 6 months FY 98-99 




$2,525 



Filers Earning More Than $20,000 
($400 registration fee and $50 client fee) 





# of filers 


Recommended 
Fee 


Total 


Campaign 
Consultant 
Registration 


17 


$400 


$6,800 


Client 
Registration 


34 


$50 


$1,700 


No. days 


Late Filing 
Fine 


13 


$50 


$650 




2 


$100 


$200 










Annual (12 months total) 




$9,350 


Total for 6 months FY 98-99 




$4,675 



Total revenue for CY 99 = $15,580 



Total cost of administration for CY 99 = $28,928 



Total cost of program covered = 55% 



Revenue for FY 98-99 (6 mos.) = $7,790 



Cost of administration for FY 98-99 (6 mos.) = $14,464 



Cost of program covered for FY 98-99 = 55% 



Annual Estimated Costs of Administering 
Campaign Consultant Program at 35 filers 



Attachment 11 



Tasks 


Work Hours 


Reproduction Costs 


Mailing Costs 


Advice 


336 






Notification/Mailing 


70 


$168 


$700 


Intake/Receipt 


42 






Facial Audit 


42 






Quarterly Report Production/Distribution 


224 


$256 


$150 


Addition/Termination of Clients 


140 


$4 




Bookkeeping 


112 






Press Release 


12 






Totals 


978 


$428 


$850 


.... . 


978 x $21* 
(salary) = 
$20,538 x. 21% 
(fringes) = 
$4,313 + 
$20,538 = 


.» 




$24,851 






* Average salaries of Deputy Executive Director, 
Executive Director, and Administrative Assistant 



Task 


Work Hours 


Reproduction Costs 


Mailing Costs 


Formal Audit 


120 


$20 


$20 




120 x $19* 






(salary) = 






$2,280 x .21% 






(fringes) = $479 






+ $2,280 = 






$2,759 





* Salary of Campaign Finance Auditor 



TOTALS 



$24,851 + 
$2,759 = 
$27,610 


$448 


$870 



GRAND TOTAL $28,928 



$28,928/35 (estimated number of filers) = 
[$826 campaign consultant registration fee 



$826 x .66 (amount of time spent on filer) = 
$826 x .33 (amount of time spent on client) = 
$272/2 (average number of clients) = 
| $136 client registration fee 



$545 
$272 



in 



Memo to Finance Committee 

November 9, 1998 Special Finance Committee Meeting 

Item 3 - File 98-1508 



Item: 



Description: 



Resolution establishing an advisory task force to evaluate 
the impact of living wage proposals on San Francisco's 
economy, businesses, non-profit organizations and 
residents; and setting forth the membership and duties of 
such advisory task force. 

According to the Office of the Sponsor of the proposed 
resolution, a number of cities, including Oakland and Los 
Angeles recently adopted an ordinance, to require 
minimum wage and benefit levels which are to be paid to 
employees of private businesses and some non-profit 
organizations. Other Cities are considering similar 
ordinances according to the Office of the Sponsor. 

Approval of the proposed resolution would authorize the 
creation of an advisory task force, to be called the Living 
Wage Task Force, to evaluate the impact of living wage 
proposals on San Francisco's economy, businesses, non- 
profit organizations and residents. 

The proposed resolution would authorize the Living Wage 
Task Force to take the following actions: 

• Assist the Board of Supervisors and the Mayor in 
reviewing various proposals, legislation and studies of 
the impact of a "living wage" ordinance in the City. 

• Study, discuss and provide comments on "living wage" 
legislative proposals, supporting research and 
analysis, and related issues; and, communicate 
findings and recommendations regarding such 
proposals, research and analysis to the Board of 
Supervisors and the Mayor. 

• Prepare to testify before the Board of Supervisors, if so 
requested, on "living wage" issues and legislation. 

• Appoint a chairperson to convene and run meetings 
and to work with City staff to ensure that meetings 
are properly noticed and that the Board of Supervisors 
is informed of Living Wage Task Force actions. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

11 



Memo to Finance Committee 

November 9, 1998 Special Finance Committee Meeting 



Comments: 



• Open the Living Wage Task Force meetings to the 
public and comply with the City's Sunshine Ordinance. 

Under the proposed legislation, the Living Wage Task 
Force would be comprised of 15 members: one appointed 
by each member of the Board of Supervisors and the 
remaining four appointed by the Mayor. 

According to the proposed legislation, appointments to the 
Living Wage Task Force would be made from those 
individuals who represent small and large businesses, 
non-profit organizations that contract with the City, labor 
and other groups potentially affected by the passage of a 
"living wage" ordinance in the City. Lender the proposed 
legislation, the Department of Administrative Services 
(DAS) would provide existing staff support to assist the 
Living Wage Task Force. 

The proposed legislation also contains a provision that 
requires the Living Wage Task Force to terminate within 
six months of its approval by the Board of Supervisors. 

1. According to Mr. Steve Nelson of DAS, providing staff 
support for the Task Force would require less than 10 
hours per month and could be achieved with existing 
budgeted DAS clerical staff. 

2. According to the Office of the Sponsor, the members of 
the Task Force would not receive any compensation for 
their service on the Task Force. 



Recommendation: 



Approval of the proposed resolution is a policy matter for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

12 



Memo to Finance Committee 

November 9, 1998 Special Finance Committee Meeting 




-U2 



Harvey M. Rose 



cc: Supervisor Teng 
President Kaufman 
Supervisor Newsom 
Supervisor Ammiano 
Supervisor Bierman 
Supervisor Brown 
Supervisor Katz 
Supervisor Leno 
Supervisor Medina 
Supervisor Yaki 
Supervisor Yee 
Clerk of the Board 
Controller 
Gail Feldman 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



13 



'.aiT 




City and County of San Francisco 

Meeting JVlinutes 

Finance Committee 

Members: Supervisors Mabel Teng, Barbara Kaufman, Gavin Newsom 



Veterans Building 

401 Van Ness Avenue, 

Room 308 

San Francisco, CA 

94102-4532 



Clerk: Joni Blanchard 



\]% Wednesday, November 18, 1998 



1:00 PM 



Veterans Building 

401 Van Ness Ave., Room 410 

San Francisco, CA 94102 



Regular Meeting 



Members Present: Mabel Teng, Gavin Newsom. 



Members Absent: Barbara Kaufman. 



DOCUMENTS DhP i. 

NOV \ 9 1998 

SAN FRANC ISLiO 
PUBLIC LIBRARY 



Meeting Convened 

Meeting convened at 1:05 p.m. 

CONSENT AGENDA 

All matters listed hereunder constitute a Consent Agenda, are considered to be routine and will be acted upon 
by a single roll call vote of the Committee. There will be no separate discussion of these items unless a 
member of the Committee so requests, in which event the matter shall be removed from the Consent Agenda 
and considered as a separate item. 

981682 [Emergency Repair, Vallejo Street Sewer] 

Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate 
sewer on Vallejo Street from Van Ness Avenue to Polk Street - $260,1 12. (Public Utilities Commission) 

(Fiscal impact.) 

10/2/98, RECEIVED AND ASSIGNED to Finance Committee. 

Speakers: None. 
RECOMMENDED.. 

The foregoing items were acted upon by the following vote: 

Ayes: 2 - Teng, Newsom 
Absent: 1 - Kaufman 

Severed from the Committee Consent Agenda 

981683 [Prop J Contract - Security Services] 

Resolution concurring with the Controller's certification that security services can be practically performed at 
the Department of Human Services by private contractor for lower cost than similar work services performed 
by City and County employees. (Department of Human Services) 

9/30/98, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee. Amended beginning on line 5 after "employees" and on line 18 after "services" to add 

"; retroactive to October 1 , 1998." (See new title). Speaker: Harvey Rose, Budget Analyst. 

AMENDED. 



City and County of San Francisco 



Printed at 2:47 PM on 1I/18/9S 



Finance Committee Meeting Minutes November 18, 1998 

Resolution concurring with the Controller's certification that security services can be practically performed at 
the Department of Human Services by private contractor for lower cost than similar work services performed 
by City and County employees; retroactive to October 1, 1998. (Department of Human Services) 

RECOMMENDED AS AMENDED., by the following vote: 
Ayes: 2 - Teng, Newsom 
Absent: 1 - Kaufman 

REGULAR AGENDA 

981783 [Reserved Funds, DTIS/ Administrative Services! 

Hearing to consider release of reserved funds, Department of Administrative Services (Ordinance No. 195-98), 
in the amount of $75,000, to fund the contractual services of Digital Equipment Corporation for the planning 
phase of the City Services Project. (Administrative Services Department) 

10/22/98, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee Release of $66, 780 approved Speakers Harvey Rose, Budget Analyst; Steve Nelson. 
Department of Administrative Services - support. 
APPROVED AND FILED by the following vote: 

Ayes: 2 - Teng, Newsom 

Absent: 1 - Kaufman 

981831 [Reserved Funds, Dept. of Public Works| 

Hearing to consider release of reserved funds. Department of Public Works, (1990 Earthquake Safety Bond 
Program Phase 2, Ordinance 273-95, Files 101-95-7 and 101-95-7.1), in the total amount of $1,200,000 to 
fund the War Memorial Opera House roof repair and the War Memorial Veterans Building interim seismic 
upgrade. (Department of Public Works) 

10/28/98, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee. Release of $1,200,000 approved Speakers Har\ey Rose, Budget Analyst; Elizabeth 
Murray, War Memorial - support. 
APPROVED AND FILED by the following vote: 

Ayes: 2 - Teng, Newsom 
Absent: 1 - Kaufman 

981770 [Extension and Renewal of Leases| 

Resolution authorizing retroactive extension and renewal of eight (8) existing leases of real property required 
by the Department of Public Health. (Real Estate Department) 

10/19/98, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee Amended on page I, line 13 to replace "1997" with "1998" Speakers Harvey Rose. 

Budget Analyst; Harry Quinn, Department of Real Estate - support. 

AMENDED. 

RECOMMENDED AS AMENDED., by the following vote: 
Ayes: 2 - Teng, Newsom 
Absent: 1 - Kaufman 



City and County of San Francisco 2 Printed at 2:48 PM on 11/18/98 



Finance Committee 



Meeting Minutes 



November 18, 1998 



981834 [Lease of Property at 1570 Mission Street) 

Resolution authorizing the lease of real property of a portion of the second floor at 1570 Mission Street, San 
Francisco, California, for the Department of Human Services. (Real Estate Department) 

10/28/98, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Wil Lightborne, General Manager, 
Department of Human Services - support. 
RECOMMENDED., by the following vote: 

Ayes: 2 - Teng, Newsom 

Absent: 1 - Kaufman 

981821 [Appropriation, Sheriff] 

Ordinance appropriating $298,271, Sheriffs Department, of State Grant Revenue for professional services, 
purchase of computer equipment, software upgrades, laundry equipment, and other miscellaneous 
improvements to jail facilities for fiscal year 1998-1999. (Sheriff) 

(Fiscal impact.) 

10/28/98, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Jean Mariani, Sheriff's Department - support. 
RECOMMENDED by the following vote: 

Ayes: 2 - Teng, Newsom 

Absent: 1 - Kaufman 
981 828 [Appropriation, PUC-Clean Water] 

Ordinance appropriating $590,000, PUC-Cleanwater, from Clean Water Program Fund Balance to claims and 
judgments for fiscal year 1998-1999 and authorizing settlement cf litigation of Peter and Barbara Winkelstein 
for a total settlement of $590,000. (Controller) 

(Fiscal impact.) 

10/28/98, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Ted Lakey, Deputy City Attorney - provided 

information. 

RECOMMENDED by the following vote: 

Ayes: 2 - Teng, Newsom 

Absent: 1 - Kaufman 

981653 [Moscone Center Expansion Project] Supervisor Kaufman 

Ordinance amending Article V, Chapter 23, Part I of the San Francisco Municipal Code (Administrative Code) 
by adding Section 23.26A to authorize the Director of Property to terminate leases or extend leases for lessees 
in buildings to be acquired by the City and County of San Francisco by eminent domain for the Moscone 
Center Expansion Project as the director deems necessary for the project and appropriate for the lessees. 

(Adds Section 23.26A.) 

10/5/98, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Harry Quinn, Department of Real Estate - 

support. 

RECOMMENDED by the following vote: 

Ayes: 2 - Teng, Newsom 

Absent: 1 - Kaufman 



City and County of San Francisco 



Printed at 2:4S ftM on 11 1S.VS 



Finance Committee Meeting Minutes November 18, 1998 

981659 [City Memberships] Supervisor Kaufman 

Ordinance amending Administrative Code by amending Section 16.6, relating to membership by City 
Departments in professional, trade and other organizations; repealing various sections authorizing membership 
in various organizations; re-numbering various sections as new sections; and providing for continuation of 
current and existing memberships. 

(Amends Section 16.6; repeals Sections 16.6.1, 16.6-2, 16.6-2.1, 16.6-3, 16.6-4, 16.6-5, 16.6-6, 16.6-7, 16.6-8, 
16.6-9, 16.6-10, 16.6-11, 16.6-12, 16.6-13, 16.6-14, 16.6-15, 16.6-16, 16.6-17, 16.6-17.1, 16.6-17.2, 16.6- 
17.3, 16.6-17.4, 16.6-19, 16.6-20, 16.6-21, 16.6-22, 16.6-23, 16.6-24, 16.6-25, 16.6-26, 16.6-27, 16.6-28, 16.6- 
29, 16.6-30, 16.6-31, 16.6-32, 16.6-33, 16.6-34, 16.6-35,1 6.6-35.1,16.6-36, 16.6-37, 16.6-38, 16.6-39, 16.6- 
40, 16.6-41, 16.6-42, 16.6-43, 16.6-44, 16.6-45, 16.6-46, 16.6-47, 16.6-47.1, 16.6-59, 16.6-60, 16.6-61,16.6- 
62; renumbering Sections 16.6-48, 16.6-49, 16.6-49.1, 16.6-49.2, 16.6-49.3, 16.6-51, 16.6-53, 16.6-54, 16.6- 
55, 16.6-56, 16.6-57, 16.6-58 as new Sections 16.6-1, 16.6-2, 16.6-3, 16.6-4, 16.6-5, 16.6-6, 16.6-7, 16.6-8, 
16.6-9, 16.6-10, 16.6-11 and 16.6-12 respectively.) 

10/5/98, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Alison Krumbein, Aide to Supervisor 
Kaufman - support. 
RECOMMENDED by the following vote: 

Ayes: 2 - Teng, Newsom 

Absent: 1 - Kaufman 

981747 (Civil Filing and Appearance Fees for Law Library | Supervisor Brown 

Resolution increasing civil filing and appearance fees provided in Business and Professions Code Section 
6321, 6322, 6322.1 for the operation of the Law Library. 

10/19/98, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee. Speakers: Harvey Rose. Budget Analyst; Marcia Bell. Law Librarian - support 
RECOMMENDED by the following vote: 

Ayes: 2 - Teng, Newsom 

Absent: 1 - Kaufman 

Adjournment 

Meeting adjourned at 1 :35p.m. 



City and County of San Francisco 4 Printed at 2:48 PM on 1 1 ItVS 



Public Library ,Gov't Info. Ctr., 5 th Fir 
Attn: Susan Horn 



7 



CITY AND COUNTY 




OF SAN FRANCISCO 



^BOARD OF SUPERVISORS 



BUDGET ANALYST 



D0 CUKM^ D * PT - 

NOV 1 7 1998 

S ,'r.. \C Ub^ aV 



1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



November 13, 1998 
TO: Finance Committee 

FROM: -Budget Analyst /?«©.»«tAAO-i*u Ar «>n.«.+t^ « 
SUBJECT: November 18, 1998 Finance Committee Meeting 
Item 1- File 98-1682 
Department: 



Item: 

Amount: 
Source of Funds: 
Description: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution authorizing the expenditure of funds in the 
amount of $260,112 for emergency replacement of the 
structurally inadequate sewer in Vallejo Street between 
Van Ness Avenue and Polk Street. 

$260,112 

1994 Sewer Revenue Bond Funds 

The Public Utilities Commission advises that on April 23, 
1998, the sewer located in Vallejo Street between Van 
Ness Avenue and Polk Street failed, and immediate 
repairs were required in order to protect the health, 
welfare, and property of the citizens of San Francisco. 
The PUC declared an emergency on April 23, 1998. In 
accordance with Section 6.30 of the Administrative Code, 
the PUC initiated expedited contract procedures, and 
awarded a contract to J.M.B. Construction, Inc. in the 
amount of $236,850. 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 



Budget: 



The budget for the subject emergency repair work totals 
$260,112, including $206,962 in actual construction costs 
and $53,150 for DPW engineering and construction 
management costs. As shown in Attachment 1, provided 
by DPW, the actual emergency repair work was completed 
by J.M.B. Construction, Inc. for $206,962, or $29,888 less 
than the contracted bid amount of $236,850. Attachment 
2 details the DPW engineering and construction 
management costs of $53,150. 



Comments: 



1. Mr. P.T. Law of the DPW advises that the low bid for 
emergency repair work was submitted by J.M.B. 
Construction, Inc. The table below lists the bidders and 
the amounts bid: 



Bidder 



Bid Amount 



J.M.B. Construction, Inc. 
Ranger Pipelines Inc. 



$236,850 
$288,165 



2. Mr. Law reports that the repair work of the damaged 
sewer began on May 18, 1998 and was completed on July 
6, 1998. 

3. Mr. Law advises that due to various delays in receiving 
expenditure documentation from the Contractor, the PUC 
is requesting approval of this proposed resolution 
approximately three and a half months after the 
construction work was completed. 



Recommendation: 



Approve the proposed resolution. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



Attachment i 




Attachment 2 



Cost Breakdown for (J.O. # 1604N, Contract # CW-176E) 
Vallejo Street Emergency Sewer Replacement 

Bureau of Engineering 



Classification 


Title 




Rate 


Hours 




Cost 


5504 


Project Manager II 


$ 


92 


20 


S 


1,840 


5206 


Associate Civil Engineer 


$ 


75 


64 


5 


4,800 


5366 


Civil Engineering Associate II 


s 


63 


170 


S 


10,710 


5204 


Assistant Civil Engineer 


s 


61 


120 


S 


7320 


5382 


Engineering Trainee HI 


s 


40 


47 


5 


1.880 


1426 


Secretary 


s 


45 


80 


S 


3,600 



Bureau of Construction Management 



$ 30,150 



Classification 


Title 




Rate 


Hours 




Cost 


5210 


Senior Civil Engineer 


S 


100 


12 


$ 


1.200 


5208 


Civil Engineer 


5 


80 


25 


S 


2.000 


5204 


Assistant Civil Engineer 


S 


61 


179 


$ 


10.919 


6318 


Construction Inspector 


S 


74 


120 


$ 


8.880 












s 


22,999 










Rounded: 


$ 


23,000 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 



Item 2 - File 98-1683 

Department: 

Item: 



Service to be 
Performed: 



Description: 



Department of Human Services (DHS) 

Resolution concurring with the Controller's certification 
that security services can continue to be practically 
performed at the Department of Human Services by 
private contractor for lower cost than similar work 
services performed by City and County employees. 

Security services at Department of Human Services 
facilities 

Charter Section 10.104 provides that the City may 
contract with private firms for services which have been 
performed by City employees if the Controller certifies, 
and the Board of Supervisors concurs, that such services 
can in fact be performed by private firms at a lower cost 
than similar work services performed by City employees. 

The Controller has determined that contracting for the 
security services for FY 1988-99 would result in estimated 
savings as follows: 



City-Operated Service 
Costs 
Salaries 
Fringe Benefits 
Total 



Lowest 


Highest 


Salarv 


Salarv 


Step 


Step 


,604,464 


SI, 893, 444 


489.643 


535.070 



2,094,10' 



2,428,514 



Contractual Services Costs 1.251.421 1.251.420 

Estimated Savings $842,686 51,177,094 



Comment: 



1. Ms. Rose Chow of the DHS reports that security 
services have been continuously provided by an outside 
contractor since 1973 and has been certified as required 
by Charter Section 10.104. 

2. The subject security services would be provided at five 
DHS faculties, including 170 Otis, 1235 Mission, 1440 
Harrison, 1428 Bush, and at San Francisco General 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 

Hospital. The period for the subject contract is the one 
year period October 1, 1998 through September 30, 1999. 
Therefore, the proposed resolution should be amended to 
retroactively authorize the contract to begin October 1, 
1998. 

3. According to Ms. Chow, the original contract with 
McCoy's Patrol Service was for the period September 1, 
1995 through August 31, 1997. On September 1, 1997, the 
contract was extended by six months, through February 
28, 1998. Since that time, the contract has been on a 
month-to-month basis. 

4. According to Mr. Rick Kimball of the Purchasing 
Department, if the subject resolution is approved, the 
existing contract with McCoy's Patrol Services would be 
extended by one year, as of October 1, 1998. Attachment 1 
is a memo from Mr. Kimball explaining the basis for 
extending the current contract without further 
competitive bidding. 

5. The Controller notes that the Contractual Services 
Costs used for the purpose of this analysis is based on the 
contractor's projected actual costs for FY 1998-99. 

6. The Controller's supplemental questionnaire with the 
Department's response is shown as Attachment 2 to this 
report. 

Recommendation: Amend the proposed resolution to provide for retroactivity 

and approve the proposed resolution as amended. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



i.i.or runt/OAJinij jtn 



Attachment ] 



City and County of San Francisco 



Purchasing Department 




Edwin M. Lee 
Director 



October 14, 1998 



TO: 



FROM: 



Ms. Taylor Emerson 
Budget Analyst Office 

Rick Kimball 
Senior Purchaser 



SUBJECT: Contract Extension: Security Guard Services for DHS 



Contract Proposal No. 86070 is being extended for an additional one (1) year period for the 
following reasons: 

• The Purchasing Department plans on developing an RFP process for the required 
security services as soon as legislation is approved by the Board to authorize 
Purchasing to conduct RFP Procurements. 

• The current vendor (McCoy's Patrol Services is a certified MBE vendor and is 12B 
compliant 

• DHS has found McCoy's performance under the current contract acceptable and has 
requested the extension. 

I trust this information meets with your request. 

Please contact me at 554-6751 if I may be of further assistance. 



cc: ' Mike Ward - Contract Specialist 
File 



RKxad 



633 Folsom St., Room 210 del. (415) 554-6743 Fax (415) 554-6717 

Home Pago: www.ci.tf.ca. us/purchase/ Recycled paper 



San Francisco 94107-3607 
E-mail; Purch»slng@ci.sf.ca.us 



Attacnment I 



CHARTER 10.104.15 PROPOSITION ] QUESTIONNAIRE 

DEPARTMENT: - HUMAN SERVICES (45) 

CONTRACT SERVICE: SECURITY . . 

CONTRACT PERIOD: 10/1/98 THROUGH 9/30/99 

( 1 ) Who performed the service prior to contracting out? 
This service has always been contracted out. 

(2) How many city employes were laid off as a result of contracting out? 
None 

(3) Explain the disposition of employees if they were not laid off. 
N/a 

(4) What percentage of city employees' time is spent of services to be contracted out? 
N/a 

(5) How long have the services been contracted out? Is this likely to be a one-time or an ongoing 
request for contracting out? 

This service has been contracted out since 1 97 J . It is an ongoing request. 

(6) What was the first fiscal year for a Proposition J certification? Has it been certified for each 
subsequent year? 

We have completed a Prop ] request since 1976. It has been certified each subsequent contract 
year since. 

(7) How will the services meet the goals of your MBE/WBE plan? 

The current contract is minority owned. A diverse staff of minority employees has historically 
staffed this service area. The contract selection is done by the Purchaser's office and all bidders 
must comply with HRC standards. 

(S) Does the proposed contract require that the contractor provide health insurance for its 
employees? Even if not required, are health benefits provided? 

The proposed contract does not require health benefits be provided. The contractor is providing 
health benefits. 

(9) Does the proposed contractor provide health benefits to employees with spouses? If so, are the 
same benefits provided to employees with domestic partners? If not, how does the proposed 
contractor comply with the Domestic Partners ordinance? 



We require the contractor to comply with the Domestic Partner Act. 

Department Representative: Rose Chow 

557 5404 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 



Item 3 - File 98-1783 
Department: 

Item: 

Amount: 
Source of Funds: 
Description: 



Department of Administrative Services (DAS) 
Department of Telecommunications and Information 
Services (DTIS) 

Hearing to consider the release of reserved funds in the 
amount of $75,000 from previously appropriated General 
Fund monies for the Internet On-Line Processing Plan of 
the City Services Project. 

$75,000 

Previously appropriated, reserved General Fund monies. 

In May of 1998, the Board of Supervisors appropriated 
$1,000,000 of General Fund monies (File No. 98-734) to 
the Department of Telecommunications and Information 
Services (DTIS) to partially fund (1) the construction of a 
City-owned fiber optic network 1 to enable faster 
transmission of data between City departments (i.e. 
emergency services information) and (2) to completely 
fund the development of an Internet On-Line 2 Processing 
Plan, which is the planning phase of the City Services 
Project, managed by the Department of Administrative 
Services (DAS). 

Of the above noted $1,000,000 in previously appropriated 
General Fund monies, $75,000 was placed on reserve 
pending selection of a contractor to develop the Internet 
On-Line Processing Plan. This request would authorize 
the release of $75,000 to pay the Digital Electronic 
Corporation for costs already incurred as a result of 
developing the Internet On-Line Processing Plan. 

According to Ms. Karen Hong of DAS, the Internet On- 
Line Processing Plan includes the design for the City 



1 A "fiber optic network" is used to transmit digital information, in the form of a light, such as from a 
laser, through fibers or thin rods of glass or other transparent material, rather than using copper 
wires to transmit data electronically, such as is most commonly used for telephone and data 
transmissions. The "bandwidth" or data transfer capacity of a fiber optic network greatly exceeds 
that of a copper wire network, and a fiber optic network is not subject to electrical interference. 

2 On-Line means accomplishing an operation, such as transferring funds, while connected to a 
computer network. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 



Budget: 



Comment: 



Recommendation: 



Services Project which will be a computer system that 
enables citizens to conduct on-line business transactions 
with City departments over the proposed City-owned fiber 
optic network. Specifically, Ms. Hong states that the 
City Services Project will enable citizens to sign onto the 
Internet from home, work or the Public Library- to look up 
information, make inquiries and conduct business 
transactions with City departments. 

Ms. Hong reports that in 1997, as the first step toward 
constructing the City Services Project, DAS contracted the 
Digital Equipment Corporation (DEC) to develop the 
Internet On-Line Processing Plan and that DEC, in turn, 
has produced such plan which includes (1) a project 
model, (2) an implementation plan and (3) cost estimates 
for the City Services Project. 

The Attachment, provided by DAS. contains the billing 
invoice in the lump sum amount of $66,780, which DAS is 
required to pay DEC for the costs incurred to develop the 
Internet On-Line Processing Plan. The Attachment also 
contains a description of DEC services and deliverable 
work performed for the Internet On-Line Processing Plan. 

As noted above, this request is for the release of $75,000. 
However, as shown in the Attachment, the actual costs 
incurred by DEC is $66,780, or $8,220 less than this 
request of $75,000. 

Release $66,780 of the requested $75,000 on reserve and 
continue to reserve the balance of $8,220. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Invoice 



Digital Equipment Corporation 

Customer Inquiry Information 

CONTACT, Sherry McComb-Shelton 

FOR ASSISTANCE, CALL (415) 477-6223 



Attachment 
Page 1 of 6 



| Invoice Date 



02 -OCTOBER- 1998 



JJ Customer Order No. 

7I RESOLUTION#4015-98/9 



9 


99005637J 947861499 


Invoiced To 




0964055 


Delivered To: 


DEPT OF ADMINISTRATIVE SVCS 


DEPT OF ADMINISTRATIVE SVCS 


KAREN HONG 


KAREN HONG 


CITY & COUNTY OF SAN FRANCISCO 


CITY & COUNTY OF SAN FRANCISCO 


RM 402 


RM 402 



401 VAN NESS AVE 

SAN FRANCISCO CA 94102 



401 VAN NESS AVE 

SAN FRANCISCO CA 94102 



Description 



Oty/ 

Hour 



Unit 
Price 



QS-FPBA9-FZ 



FIXED PRICE INTEGRATION PROJ 

LABOR 

REPORT NO. 166891 

SERVICE DATES: 

25-SEP-1998 TO 25-SEP-1998 



1.00 



NET TOTAL PRICE 



66780.00 



SUBTOTAL 



66,780.00 



66,780.00 



$66,780.00 



REMIT TO: DIGITAL EQUIPMENT CORPORATION 
DUNS 15-063-4061 
PO BOX 100500 
ATLANTA, GA 30384 

PAGE 1 

Export of these products requires prior written authorization from the U.S. Department of Commerce. 

Customer Copy 1 



PAYMENT TERMS: ON RECEIPT 



11 



Page 2 

Attachment 
Page 2 of 6 



d i Igli tja I 



June 17, 1998 

Karen Hong 

Department of Administrative Services 
401 Van Ness Avenue, Room 402 
San Francisco, California 94102 

Dear Karen; 

Digital Equipment Corporation (Digital) appreciates the opportunity to assist the City and County of San 
Francisco with (the City) City Services Project To begin this Project, this letter of engagement responds to 
the City's need for a high-level Project Phased Implementation Plan and Proposal for all 30 City 
departments (listed in Appendix A of this document). The Project Phased Implementation Plan and 
Proposal will be composed of high-level tasks, activities, schedules, manpower estimates and costs based 
on further assessment of the functional and technical requirement specifications for the 30 departments 
with more detailed focus on 6 to 10 'phase 1 ' departments. 

Background 

The City and County of San Francisco is in the process of establishing a centralized City services system 
(hereinafter "City Services") based on Web enabled, Internet technology, which can be extended out to 
the homes, neighborhoods, City Buildings and to the newty renovated City Hall. The goal of the City 
Services project is to improve access to City services for the citizens and businesses of San Francisco. 

It is envisioned that the citizens will be able to transact a vanety of general City businesses from 
a single point of access, either through the Internet from desktop systems or point-of-sale kiosks 
placed at certain key locations within the City. 

KPMG Peat Warwick LLP (hereinafter "KPMG') is a key member of the Digital team who will be 
participating in this project 

Scope and Objectives 

The focus of this initial City Services Project is to perform the following high-tevel tasks: 

Review and refine the vision and objectives, functional and technical requirements of the departments 
based on information provided by the City Services Project Working Committee representatives which 
includes Karen Hong, Rod Loucks, and Mary Fitzpatnck (hereinafter the City Project Team") In 
Appendix B of this document are a few sample, high4evel topic areas to help assess the requirements 
and environment of the overall Project 

Review and refine the proposed high-level technical solution architecture and components. 

Review, validate and refine the proposed Project model and assumptions. 

Assist the City Project Team in developing a phased implementation strategy. 

Provide advice and consulting services to assist in the development and delivery of a Phased 
Project Implementation Plan and Proposal. 



12 



Project Approach, Results and Deliverables 

Digital proposes the following project approach to achieve the goals and objectives stated above: 
Objective Deliverable(s) 



"Page 3j 

Attachment 
Page 3 of 6 



Requirements Definition 



Estimate 3 days - Consultant Team 



Meet with the City Project Team, 
and other individuals and 
organizations as needed to review 
and refine: 

The vision and objectives. 

High level business and technical 
requirements for the overall 
departments and overall City 
services. 

Estimate Vi to 1 Day per Targeted 
Phase 1 Department for 
Transaction and Information 
definition. 



Consulting and advice on 
assessing Project requirements, 
solution components, and 
implementation approach. 



Solutions definition 
architecture, 
components, and 
Project model 



Estimate 1 day 

Consultant Team 

Meet with the City Project Team for 
one day working session to: 

Review, validate and refine the 
proposed solution architecture 
and components (including 
integrating Lotus Domino) 

Review, validate and refine the 
Project model, and 
assumptions. 



A Project solution architecture. 
A Project Model. 



Assist in the 
development of a 
project strategy and a 
phased implementation 
approach. 



Estimate 2 days 

Consultant Team 

Meet with the City Project Team to 
formulate a Project strategy, 
approach, and a phased 
implementation plan. 

Determine what and how the 
departments and phases will 
chosen. 



Project Strategy and Approach. 
Phased Implementation Plan. 



13 



I O- 20-98 ; 



3 : 2 \ PM ;CiTi 



PageTj 



Project Phased 
Implementation Plan 
and Proposal 
Document and 
Presentation. 



Estimate 4 days 

Consultant Team 

Assist in documenting the Project 
Phased Implementation Plan. 

Assist in documenting the Proposal. 

Develop the Presentation. 



Attach ment 
Page 5 



r~6 



Project Phased 
Implementation Plan. 

Project Proposal 

Project Presentation 

To include a detailed cost and 
work break down structure. 



Project Staffing 

Digital will provide a Project Management resource to ensure the quality and timely presentation 
of the deliverables. Additionally business and technicaJ consultants will be engaged to perform 
the consulting activities necessary to achieve the deliverables. Project Management activities to 
Include: 

Coordination and scheduling with Departments 
Documentation of meetings summanes 
Status reporting against plan 

Deliverables 

Refine High Level Business and Technical Requirements Definition 

Refine Solutions Architecture and Approach 

Phased Implementation Strategy, Plan and Department selection criteria 

Project Implementation Model 

Estimated phased activities, resources, timeline and cost 

Departmental Questionaire - development and distnbution 

Preliminary Planning of deliverables for next phase 

Assumptions 

The City will assist in the coordination and facilitation of attaining personnel, systems and 

network resources necessary for this Project in a timely manner. 
The City will provide relevant and accurate information in a timely manner as requested. Digital 

or its partners will not need to validate the information. 
The City will provide timely access to personnel as requested. Unavailability of the City staff 

may impact milestone deliverables. 
The City departments will provide timely information on the backend integration with the City 

systems of records (i.e., mainframes). 
City Project Manager will ensure timely and complete feedback to information requested by 

Digital or its partners. The City Project Manager will ensure the cooDeration of related 

parties concerning the research and development of the background information required 

to complete this project 
Conference room, facilities, and a demonstration personal computer will be provided by the 

City. 



Fees and Expenses 



14 



2 1 PM ; C I TY ADM I N/ADM I N SVC 



The fees are based upon the amount of time and materials incurred. The fees are subject to the 
following conditions: 

This work is estimated to require about 3 weeks, beginning 3/30/98. This letter requests 
spending authorization for $66,780. Any deviations from this work estimate will require 
written approval by The City. 

The project will have management reports designed to control risk and ensure a successful 
outcome. Weekly reports will be provided which will track activities completed and cost 
(including consulting and expense details) incurred. The Reports will be delivered to the 
Digital project management team. This report will include weekly written summaries of 
progress against proposed timeline and deliverables, City contacts interviewed/consulted, 
risks and contingencies concerning the timely completion of the deliverables. 

Digital's maximum liability to The City arising for any reason relating to products and services 
rendered under this letter shall be limited to the amount of fees paid except to the extent 
that The City incurs damages due to Digital's gross negligence, willful misconduct or in 
case of infringement of third party rights. The City will indemnify and hold harmless Digital 
and its personnel from any clams, liability costs, and expenses related to our services 
under this letter except to the extent determined to have resulted from the intentional or 
deliberate misconduct of Digital personnel or intellectual property infringement 



Billing Arrangements 

A billing invoice of the cost of the engagement (estimated $ 66,780) will be issued upon delivery 
of the proposed documents and The City's acceptance of the documents. Payment will be due 
within 30 days of receipt of invoice. 



Client Participation and Responsibilities 

Digital expects significant participation from The City's management team, user community, and 
IT organization, for this project The lack of timely availability of key City personnel may 
adversely impact milestone deliverables and potentially costs. Digital requests timely access to 
The City personnel, if the timing of the access to these personnel has the potential of affecting 
the estimated timing of the deliverables, Digital will notify the City in wnting. 

The City will seek to ensure access to all required documentation, facilities, and personnel as 
necessary to accomplish the goals and objectives of this project The work to be performed will 
be performed both on site and off site. The City will provide a suitable working environment 
inclusive, but not limited to meeting space, telephones, and network and Internet access. 

We look forward to assisting you wrth this important project and appreciate the opportunity to 
continue working with your organization. To confirm your acceptance of the proposal and your 
authorization to proceed with the engagement please sign this letter in the space provided 
below and return the original to me. 

Please feel free to call me at (415)477-6220 with any questions you may have. 

Very truly yours, 



Attachment 
Pase 5 of 6 



10-20-96; 3:2iPM;ClTY ADMIN/ADMIN SVC t«'B ==« «o«» 

""*""" ™" " ™ ! Page 6 j 

Attachment 
Page 6 of 6 



George Uyeda 

Network and Systems Integration Services 

Digital Equipment Corporation 



l£ 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 



Item 4 -File 98-1831 

Department: 

Item: 



Amount: 



Source of Funds: 



Description: 



Department of Public Works (DPW) 

Hearing to consider the release of previously reserved 
funds in the amount of $1,200,000 for the purpose of 
funding the War Memorial Opera House Roof Repair and 
War Memorial Veterans Building Interim Seismic and 
Disabled Access Upgrades. 

$1,200,000 

Previously appropriated and reserved 1990 Earthquake 
Safety Bond Phase 2 Funds 

In August of 1995, the Board of Supervisors approved 
legislation appropriating $44,971,539 of 1990 Earthquake 
Safety Bond Phase 2 (ESP2) proceeds and interest 
earnings for the War Memorial Opera House Seismic 
Upgrade and Improvement Project and seismic upgrading 
of other City-owned facilities. At the same time, the 
Board of Supervisors placed $34,831,269 on reserve, 
pending DPWs submission of contract cost details for the 
Opera House Improvement Project. 

In October of 1995, the Board of Supervisors approved the 
release of reserved funds in the amount of $33,631,269 for 
the Opera House Improvement Project, leaving a balance 
of $1,200,000 on reserve. 

This subject request would release the remaining 
$1,200,000 for the purpose of funding roof repairs to the 
War Memorial Opera House and interim seismic and 
disabled access upgrades to the War Memorial Veterans 
Building. 



Budget: 



A summary budget for the requested $1,200,000 is as 
follows: 



War Memorial Opera House 

Construction costs and 15% contingency $508,300 

Architecture and Engineering design 44,800 

Construction Management 34,900 

Total $588,000 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

17 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 

War Memorial Veterans Building 

Construction costs and 15% contingency $506,000 

Architecture and Engineering design 65,000 

Construction Management 41.000 

Total S612.000 

TOTAL $1,200,000 

A detailed budget for each project, provided by Ms. Tara 
Lamont of DPW, is included in the Attachment to this 
report. 

Comments: 1. According to Ms. Lamont, roof repairs to the War 

Memorial Opera House were intended to be part of the 
original War Memorial Opera House Seismic Upgrade 
and Improvement Project, but because the seismic 
upgrading, lighting, sound and rigging system 
replacement and historic restoration of the Opera House 
had to be completed by September of 1997 for the opening 
of the City's opera season, the roof repairs became a lower 
priority. Ms. Lamont advises that the roof repairs, 
totaling $588,000, should be completed as soon as possible 
to prevent further rain damage. 

2. Ms. Lamont reports that the War Memorial Veterans 
Building is in need of substantial seismic and disabled 
access improvements. This subject request for $612,000 
would provide funding for (1) interim seismic upgrades, 
including immediate repair of cracked plaster to all 
interior stairwells, crack repair at the stage block and 
seismic bracing of the Green Room, and (2) disabled 
access upgrades to the Green Room. According to Ms. 
Lamont, the entire seismic and disabled access upgrades 
and other various improvements to the War Memorial 
Veteran's Building is estimated to cost approximately 
$79,000,000. Ms. Lamont advises that until such time as 
a source of funding can be identified for the full project, 
the proposed interim repair work, at a cost of $612,000, 
would provide basic improvements to the visual quality 
and stability of the facility. 

3. According to Ms. Lamont, if the proposed resolution is 
approved, DPW plans to solicit bids for the construction 
contracts for roof repairs to the War Memorial Opera 
House and interim seismic and disabled access upgrades 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

18 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 

to the War Memorial Veterans Building in March of 1999, 
and award such contracts to the lowest bidders in July of 
1999. Ms. Lamont estimates that the subject projects will 
be completed in November of 1999. 

Recommendation: Approve the proposed requested release of reserved 

funding in the amount of $1,200,000. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

19 



Attachment 
rage 1 of 2 



RELEASE OF RESERVE REQUEST 

WAR MEMORIAL OPERA HOUSE ROOF REPAIR 

Oct-20-96 

APPENDIX TO EXHIBIT A 



NEED AND PURPOSE 

1 CONSTRUCTION 

Construction Cost 
Construction Contengency 15% 



$442,000.00 
$66,300.00 



Total: Construction Costs 

2 A/E DESIGN FEE 
Bureau of Architecture: 
Classification: TrtJe: No. of Hours: Rate 
5268: Architect: 128 hours @ $84.42/hr 
5266: Architectural Associate II: 320 hours @ S72.90/hr 
5260: Architectural Assistant I: 192 hours ® $54. 66/hr 



$508,300.00 



$10,680.00 
$23,360.00 
$10,560.00 



Total: A/E Design Fee 

3 Construction Services 

Bureau of Construction Management 

Classification: Title: No. of Hours: Rate 

5212: Construction Manager. 77 hours @ $100/hr 

6331: Building Inspector 30 hours @ $75/hr 

Bureau of Architecture - 

5266: Architectural Associate II: 1 80 hours @ $73/hr 

Permit Fee 



$44,800.00 

rcxnaad to i 



$7,700.00 
$2,250.00 

$13,140.00 
$11,810.00 



Total: Construction Services Fe« 



|GRAND TOTAL 



$34,900.00 

rounOad to wi it 100 

$S8a,ooo.oo~| 



20 



Attachment 
i-age 2 of 2 



RELEASE OF RESERVE REQUEST 

WAR MEMORIAL VETERAN'S BUILDING INTERIM SEISMIC IMPROVEMENTS 

Oct-20-1998 

APPENDIX TO EXHIBIT A 

NEED AND PURPOSE 



1 CONSTRUCTION 

Construction Cost 
Construction Contengency 



$440,000.00 
$66,000.00 



Total: Construction Costs 

2 A/E DESIGN FEE 

Bureau of Architecture: Hrs. Rate/Hr. 

Classification: Title: No. of Hours: Rate 

5268: Architect: 170 85 

5266: Architectural Associate II: 450 73 

5260: Architectural Assistant I: 322 55 



$506,000.00 



$14,450.00 
$32,550.00 
$17,710.00 



Total: A/E Design Fee 

3 Construction Services 

Bureau of Construction Management 

Classification: Title: No. of Hours: Rate 

5212: Construction Manager 

6331: Building Inspector 

Bureau of Architecture 

5266: Architectural Associate II: 

Permit Fee 



35 

200 

170 



100 
75 

73 



$65,000.00 

rounded to nearest 100 



$3,500.00 
515,000.00 



Total: Construction Services Fee 



$12,410.00 
510,000.00 



$41,000.00 

rounded to nearest 100 



|GRAND TOTAL 



21 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 



Item 5 -File 98-1770 
Department: 

Item: 

Description: 
(1) Location: 



Department of Real Estate (DRE) 
Department of Public Health (DPH) 

Authorizing the retroactive extension and renewal of 
eight existing leases of real property leased by the 
Department of Public Health. 

Each of the proposed leases is summarized below: 

298 Monterey Boulevard (entire property) 



Purpose of Lease: Outpatient Mental Health Clinic 



Lessor: 

No. of Sq. Ft. and 

Cost/Month: 



Annual Rent: 

% Change 
over 1997-98: 



John William Powell and Sylvia Cambell Powell 



approx. 4,025 sq. ft. @ $0.71 /sq. ft./ mo. or $2,850 
rent/mo. 

$34,200 



None 



Utilities & Janitor 

Provided 

by Lessor: Janitorial only. 



Term of Lease: 



July 1, 1998 on a month-to-month basis (not to exceed 12 
months) 



Right of Renewal: None 

Source of Funds: 55 percent State Funds and 45 percent General Fund 
monies included in DPHs FY 1998-99 budget 



(2) Location: 3901-3905 Mission Street (portion of the ground floor) 

Purpose of Lease: Outpatient Mental Health Clinic 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

22 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 

Lessor: Giovacchino and Armando Diodati 

No. of Sq. Ft. and 

Cost/Month: approx. 2,570 sq. ft. @ $1.20/sq. ft./mo. or $3,084 rent/mo. 

Annual Rent: $37,008 

% Change 

over 1997-98: None 

Utilities & Janitor 

Provided 

by Lessor: Landlord provides all janitorial and utility services. 

Term of Lease: July 1, 1998 through June 30, 1999 

Right of Renewal: None 

Source of Funds: 55 percent State Funds and 45 percent General Fund 
monies included in DPH's FY 1998-99 budget 



(3) Location: 3911 Mission Street (portions of the ground floor) 

Purpose of Lease: Outpatient Mental Health Clinic 

Lessor: Giovacchino and Armando Diodati 

No. of Sq. Ft. and 

Cost/Month: approx. 1,500 sq. ft. @ $1.20/sq. ft./mo. or $1,800 rent/mo. 

Annual Rent: $21,600 

% Change 

over 1997-98: None 

Utilities & Janitor 

Provided 

by Lessor: Landlord provides all janitorial and utility duties. 

Term of Lease: July 1, 1998 through June 30, 1999 

Right of Renewal: None 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

23 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 

Source of Funds: 55 percent State Funds and 45 percent General Fund 
monies included in DPH's FY 1998-99 budget 



(4) Location: 

Purpose of Lease: 

Lessor: 

No. of Sq. Ft. and 
Cost/Month: 

Annual Rent: 

% Change 
over 1997-98: 

Utilities & Janitor 

Provided 

by Lessor: 

Term of Lease: 



***** * ** A i. X Jc ft* * ***** 

111 Potrero Avenue (ground floor) 
Adult Outpatient Mental Health Clinic 
111 Potrero Partnership 

approx. 6,000 sq. ft. @ $1.33/sq. ft./mo. or $8,000 rent/mo. 

$96,000 

43 percent 



Janitorial only. 

July 1, 1998 on a month-to-month basis (not to exceed 12 
months) 



Right of Renewal: None 
Source of Funds 



55 percent State Funds and 45 percent General Fund 
monies included in DPH's FY 1998-99 budget 



******* k *** ** *** **** 



(5) Location: 

Purpose of Lease: 

Lessor: 

No. of Sq. Ft. and 
Cost/Month: 

Annual Rent: 



10-20 29th Street (entire property) 
Children's Outpatient Mental Health Clinic 
George, Lois and Lawrence Maisels 

appox. 2,400 sq. ft. @ $0.62/sq. ft./mo. or $1,500 rent/mo. 
$18,000 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

24 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 

% Change 

over 1997-98: None 

Utilities & Janitor 

Provided 

by Lessor: None 

Term of Lease: July 1, 1998 on a month-to-month basis (not to exceed 12 

months) 

Right of Renewal: None 

Source of Funds: 55 percent State Funds and 45 percent General Fund 
monies included in DPH's FY 1998-99 budget 



(6) Location: 755-61 South Van Ness Avenue (ground floor) 

Purpose of Lease: Adult Outpatient Mental Health Clinic 

Lessor: AIM TWO 

No. ofSq. Ft. and 

Cost/Month: approx. 7,101 sq. ft. @ $1.00/sq. ft./mo. or $7,100 rent/mo. 

Annual Rent: $85,200 

% Change 

over 1997-98: 25 percent 

Utilities & Janitor 

Provided 

by Lessor: None 

Term of Lease: July 1, 1998 on a month-to-month basis (not to exceed 12 
months) 

Right of Renewal: None 

Source of Funds: 55 percent State Funds and 45 percent General Fund 
monies included in DPH's FY" 1998-99 budget 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

25 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 

(7) Location: 759 South Van Ness Avenue (entire second floor') 

Purpose of Lease: Children's Outpatient Mental Health Clinic 

Lessor: AIM TWO 

No. of Sq. Ft. and 

Cost/Month: approx. 6,445 sq. ft. @ $1.25/sq. ft./mo. or $8,056.25 

rent/mo. 

Annual Rent: $96,675 

% Change 

over 1997-98: 31 percent 

Utilities & Janitor 

Provided 

by Lessor: None 

Term of Lease: July 1, 1998 through June 30, 1999 

Right of Renewal: None 

Source of Funds: 55 percent State Funds and 45 percent General Fund 
monies included in DPH's FY 1998-99 budget 

******************** 

(8) Location: 2335 Ocean Avenue (entire property) 

Purpose of Lease: Family Mental Health Clinic 

Lessor: Doctor Terrance Lee, successor in interest to Beverly 

Pelton 

No. of Sq. Ft. and 

Cost/Month: approx. 3,954 sq. ft. @ $0.85/sq. ft./mo. or $3,360 rent/mo. 

Annual Rent: $40,320 

% Change 

over 1997-98: 10 percent 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

26 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 

Utilities & Janitor 

Provided 

by Lessor: None 

Term of Lease: July 1, 1998 on a month-to-month basis (not to exceed 12 

months) 

Right of Renewal: None 

Source of Funds: 55 percent State Funds and 45 percent General Fund 
monies included in DPH's FY 1998-99 budget 



Comments: 



* * t * * a * ******** **** * 

1. According to Mr. Steve Alms of the Department of Real 
Estate (DRE), the proposed resolution incorrectly states 
that the extension of Lease #1 at 298 Monterey Boulevard 
is retroactive to July 1, 1997. Mr. Alms reports that the 
actual date of such retroactivity is July 1, 1998. 

2. Mr. Alms reports that all of the proposed rental rates 
reflect fair market value. 

3. According to Mr. Alms: Lease #1 at 298 Monterey 
Boulevard has been negotiated on a month-to-month basis 
because there is no financial advantage to seeking a 
longer term lease for this property since its rental rate is 
already favorable to the DPH. In addition, portions of 
DPH Outpatient Mental Health Clinic at this location do 
not meet Americans with Disabilities Act requirements 
and as such, a month-to-month lease gives the DPH the 
flexibility to move this Clinic within a short period of time 
if a more suitable location is found. Lease #4 at 111 
Potrero Avenue and Lease #6 at 755-61 South Van Ness 
Avenue have been negotiated on a month-to-month basis 
because, at the request of the DPH. the DRE has located 
one single site at 1890 Bryant Street to consolidate these 
DPH Adult Outpatient Mental Health Clinics currently 
located at two separate sites. Lease #5 at 10-20 29 th 
Street has been negotiated on a month-to-month basis 
because, at the request of DPH, the DRE is currently 
seeking a new site for the DPH Children's Outpatient 
Mental Health Clinic. The DPH has learned that 
returning this Clinic to its original location at 45 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

27 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 

Onandaga Avenue, which was damaged during the 1989 
Loma Prieta Earthquake, would be more expensive than 
finding an alternative site. Lease #8 at 2335 Ocean 
Avenue has also been negotiated on a month-to-month 
basis because the DPH Family Mental Health Clinic 
located at that site is no longer large enough to meet the 
space needs of the Clinic. Therefore, at the request of 
DPH, DRE is currently seeking a new site for this DPH 
Family Mental Health Clinic. 

4. The attached memo, provided by Mr. Alms, explains 
why: (a) Lease #4 at 111 Potrero Avenue requires a 43 
percent increase in rent from $5,602.20 monthly to 
$8,000, (b) Lease #6 at 755-61 South Van Ness Avenue 
requires a 25 percent increase in rent, from $5,689 
monthly to $7,100, (c) Lease #7 at 759 South Van Ness 
Avenue requires a 31 percent increase in rent, from 
$6,133.39 monthly to $8,056.25, and (d) Lease #8 at 2335 
Ocean Avenue requires a 10 percent increase in rent from 
$3,042.71 monthly to $3,360. 

Recommendation: In accordance with Comment No. 1, amend the proposed 

resolution to reflect that Lease #1 at 298 Monterey- 
Boulevard is retroactive to July 1, 1998, instead of July 1, 
1997 and approve the proposed resolution as amended. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

28 




NOU-12-1998 16: 15 CCSF REPL ESTATE DEPT 415 552 9216 P.02/B3 

City and County of San Francisco Real Estate Department 

Office of trie 
Director of Property 

Attachment 
Page 1 of 2 
MEMORANDUM 



November 12, 1998 



TO: Harvey Rose 

Budget Analyst 

FROM: Steve Alms 

Senior Real Property Officer 
554-9865 

SUBJECT: Public Health Lease Renewals 
Fiscal Year 1998799 

The following explanations are provided in response to your questions regarding the various 
Public Health lease renewals. 

Ill Potrero Avenue (Item #4) 

The increase in rent from S5, 602.20 to $8,000.00 per month represents an increase of 
approximately 43% over the prior year. As noted in our cover letter of September 22, 1998, the 
prior rent has been in effect since July 1994. As a result, the 1997/98 rent was below market In 
addition, the market has changed dramatically in the last 18 months (by more than 30% according 
to most informed sources). The rent negotiated with the landlord for fiscal year 1998/99 is 
market rate rent, but is a dramatic change as a result of the above two factors. 

755-61 South Van Neu Avenue (Item #6) 

The increase in rent from 55,689.00 to $7,100.00 per month represents an increase of 
approximately 25% over the prior year. As noted above, the market has changed dramatically in 
the last 18 months. The market rate rent negotiated with the landlord for fiscal year 1998/99 is a 
dramatic change as a result. 

759 South Van Neu Avenue (Item #7) 

The increase in rent from $6,133.39.00 to S8.056.25 per month represents an increase of 
approximately 3 1% over the prior year. As noted in our cover letter of September 22, 1998, the 
prior rent was negotiated in 1992. Although the rent schedule included fixed annual escalations, 
the rent for fiscal year 1997/98 was below market As noted above, the market has changed 

H«*4»29^91-99 m_» to hmjfac 

5W — 

FAXiS&a-OTlS 2S Van NwAvtnw, Suit* 400 S«n Frendaco. M102 



29 



Nuu-i^-iyge 16=15 



CCSF REAL ESTATE DEPT 



415 552 9216 P. 03/03 



Attachment 
Page 2 of 2 



dramatically in the last 18 months. The market rate rent negotiated with the landlord for fiscal 
year 1998/99 is a dramatic change as a result 

2335 Ocean Avenue (Item #8) 

The increase in rent from $3,042.71 to $3,360.00 per month represents an increase of 
approximately 10% over the prior year. The premises are not adequate for City's long term use, 
and the landlord agreed to allow the City to continue to occupy the premises on a holdover under 
the terms of the lease, but requested an increase in rent. The prior rent was negotiated in 1993, 
and has not changed since that time. The 10% increase is nominal, and results in a rate that 
continues to be below market. 

If there are other questions regarding the proposed renewals, please call me at 554-9865. 



H.*SM9-2Ny?»-99 i 



TOTAL P. 03 



30 



Memo to Finance Committee 
Monday, November 18, 1998 

Item 6 -File 98-1834 



Departments: 



Item: 



Location: 



Department of Human Services (DHS) 
Department of Real Estate (DRE) 

Resolution authorizing a new lease of real property of 
a portion of the second floor at 1570 Mission Street 

1570 Mission Street 



Purpose of Lease: 



Lessor: 



To obtain space for operating Personal Assisted 
Employment Services (PAES), a recently established 
employment training program offered by DHS to serve 
employable single adults in need of welfare assistance 

Goodwill Industries 



Lessee: 

No. of Sq. Ft. and 
Cost Per Month: 



Annual Cost: 



City and County of San Francisco 



Approximately 6,000 square feet at $1.65 per square 
foot per month, for a total of $9,900 per month for the 
first 24 months, then at $1.75 per square foot per 
month, for a total of $10,500 per month for the 
remaining 36 months of the lease. 

$118,800 for each of the first two years, then $126,000 
for each of the remaining three years of the lease. 



Percentage Increase 
Over 1997-98: 



New lease 



Utilities and Janitorial 
Services Provided by 
Lessor: 



Term of Lease: 



The lessor would 
janitorial service. 



be responsible for utilities and 



According to Ms. Claudine Venegas of the Department 
of Real Estate (DRE), the lease would commence on 
the later of the date of substantial completion of 
leasehold improvements expected about 60 days after 
approval of the resolution, and would expire five years 
thereafter, or approximately January, 2004. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

31 



Memo to Finance Committee 
Monday, November 18, 1998 

Right of Renewal: 



The City has no right of renewal under the proposed 
lease. 



Source of Funds: 



Description: 



According to Mr. Dan Kim of the Department of 
Human Services (DHS), $60,000 was approved for the 
subject lease in the DHS budget for FY 1998-1999, or 
approximately six months of rent. Approximately 57% 
of the $60,000 in rental costs is covered by the General 
Fund, with the balance of the rent provided by 43% 
Federal and State funding. 

Personal Assisted Employment Services (PAES) 

The purpose of the PAES program is to provide quality 
evaluation of an individual's vocational experience, 
qualifications, strengths and needs. PAES is a 
voluntary program available to all General Assistance 
(GA) recipients who are employable but temporarily 
unemployable adults. 

An adjunct support program, the PAES Success 
Center, will provide the participant with the 
education, training, and support services necessary to 
assist in obtaining and retaining paid employment. 

PAES Success Center 



According to Mr. Patrick Duterte of the Department of 
Human Services (DHS). DHS would use the leased 
space to operate the job-seeking skills and services 
program, the PAES Success Center. Modeled after 
CalWORKs, the PAES Success Center would provide 
job-seeking skills workshops, resume services, phone 
banks, and other job-related services. The PAES 
Success Center would provide a six-day intense 
workshop, followed by four to six weeks of intensive, 
job-seeking support services. 

Utilization of Proposed Leased Space 

According to Mr. Duterte, 15 employees and 125 
program trainees at the PAES Success Center would 
occupy the leased space of approximately 6,000 square 
feet. In total, there would be 6 DHS trainers 
responsible for classroom work. 1 DHS supervisor to 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

32 



Memo to Finance Committee 
Monday, November 18, 1998 



support the trainers, 1 DHS job developer, 4 clerical 
employees, 2 employees from the Employment 
Development Department (EDD), and 1 resume writer 
obtained by contract with Pro-Serve. 

According to Mr. Duterte, utilization of the leased 
space by the PAES Success Center would involve 
building three classrooms (requiring 1,500 square 
feet), a common area that would be reserved for a 
"network center" (requiring approximately 1,500 
square feet), and 15 telephone and five computer 
carrels (requiring a total of 500 square feet). 
Additionally, 750 square feet would be allocated for a 
staff/client break room, 200 square feet for a 
conference room, 200 square feet for two interview 
rooms, 200 square feet for one storage room. 

The total space of approximately 6,000 square feet, 
less the above space allocation of 4,850 square feet, 
leaves a remainder of 1,150 square feet for employee 
use, resulting in an average of approximately 76 
square feet per employee. 



Comments: 1. Leasehold Improvements 



According to Ms. Venegas, the lessor will pay for the 
full costs of the leasehold improvements at an 
estimated cost of $800,000. Such improvements 
include building out office space, internal walls, a 
reception area, floor covering, electricity, heating, 
ventilation, and painting. Leasehold improvements 
are expected to be completed within 60 days of the 
approval of this resolution. 

2. Fair Rental Value 

According to Ms. Venegas, the proposed rent of SI. 65 
per square foot and $1.75 per square foot represent 
fair rental values, and, as previously noted, the rental 
rate of $1.75 per square foot for the remaining three 
years of the lease would not escalate or be subject to 
cost-of-living adjustments. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

33 



Memo to Finance Committee 
Monday, November 18, 1998 



3. Need For Separate Space 

Case management services of the PAES program, as 
well as the program's eligibility and employment 
services benefits, are provided at 1235 Mission Street. 
Case workers and service providers at that location 
use leased space consisting of 12,000 square feet, with 
an additional 360 square feet for the first floor elevator 
lobby. 

Separate from services provided at the 1235 Mission 
Street location, the PAES Success Center at 1570 
Mission Street would consist solely of the job-seeking 
support program to which participants would be 
referred on a case-by-case basis by case management 
workers who work at 1235 Mission Street. No space 
is available for the PAES Success Center at the 1235 
Mission Street location. 

According to Mr. Duterte, the operations of PAES at 
the 1570 Mission Street facility would be similar to the 
employment services operation, CalWORKs. Through 
that program, DHS has placed over 800 CalWORKs 
participants each year. The new space at 1570 
Mission Street is intended to physically separate the 
potentially conflicting client populations served by 
CalWORKs and those served by PAES. CalWORKs 
affects mostly single mothers with children, while 
PAES' outreach tends to be single males. Issues of 
domestic violence and other conflicts between the two 
groups have posed a concern for DHS. 

3. Benefits to Both Goodwill and the City 

According to Mr. Duterte, DHS aims to integrate into 
the Goodwill's space at 1570 Mission Street as a cost- 
sharing mechanism. According to Ms. Venegas, 
Goodwill intends to prepare the facility to become fully 
operational for its own programs in five years' time, 
but in the interim, is willing to lease the property only 
to the City, because of their common purpose of 
assisting those in need of jobs. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

34 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 



Item 7 - File 98-1821 

Department: 

Item: 



Amount: 
Source of Funds: 

Description: 



Sheriffs Department 

Ordinance appropriating $298,271 in State grant 
revenues for professional services, purchase of computer 
equipment, software upgrades, laundry equipment, and 
other miscellaneous improvements to the jail facilities for 
the Sheriffs Department. 

$298,271 

FY 1997-98 State Citizen's Option for Public Safety grant 
funds (AB 3229) 

The proposed ordinance would appropriate $298,271 in 
FY 1997-98 State Citizen's Option for Public Safety 
(COPS) grant funds to the Sheriffs Department. 

In July of 1996, the State Legislature approved AB 3229 
authorizing the annual allocation of State revenues, 
through the State budget process, to Counties throughout 
the State for the purpose of funding local public safety 
activities. In FY 1997-98, the State Legislature allocated 
a total of $2,386,164 in recurring State COPS grant funds 
to the City and County of San Francisco, including 
$1,789,622 to the Mayor's Criminal Justice Council, 
$298,271 to District Attorney's Office, and $298,271 or 
approximately 12.5 percent to the Sheriffs Department. 

Sergeant Edwin James of the Sheriffs Department 
reports that the Sheriffs Department received the above- 
noted State COPS grant funds in September of 1997. 
However, such funds were not appropriated at that time 
and have not been expended, according to Sergeant 
James. 

This ordinance would authorize the appropriation of the 
prior grant allocation of $298,271 to the Sheriffs 
Department. According to Sergeant James, the Sheriffs 
Department would expend the $298,271 as follows: 

(1) $138,224 for computer program upgrades to facilitate 
the linkage of the Police Department's new Tiburon 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

35 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 



records management system 1 with the Sheriffs 
Department's new Tiburon booking system 2 . Sergeant 
James states that this computer program linkage would 
enable the Sheriffs Department to interface with the 
Police Department via computer to prevent duplication of 
data entry by the Police Department's arresting officer 
and the Sheriffs Department's booking officer. 

According to Sergeant James, although all of the City's 
court records, including records pertaining to arrests and 
bookings, are currently maintained in one database called 
the Court Management System (CMS), the Police 
Department's arresting officer and the Sheriffs 
Department's booking officer may enter the same data 
twice into the CMS database because they cannot 
interface via computer to avoid such duplication. 
Sergeant James states that the Sheriffs Department 
would amend an existing contract with the Tiburon 
Corporation for the requested computer program linkage. 

(2) $15,382 to raise the floor in Department 20 (a former 
courtroom which is now vacated) in the Hall of Justice. 
According to Sergeant James, the space in this former 
courtroom wiU be used by the Sheriffs Department to 
conduct training in the new Tiburon booking system. 
Sergeant James states that the installation of a raised 
floor will enable the Department's staff to provide 
electrical power to the computer equipment with electrical 
wiring placed beneath the raised floorboards, rather than 
under the existing floors of the Hall of Justice which 
would be a costlier project. 

(3) $59,715 for the replacement of laundry equipment, 
including $36,335 for one commercial washer, $17,180 for 
two commercial dryers and $6,200 for installation costs, 
for County Jail #2, located on the seventh floor of the Hall 
of Justice. 



1 The Tiburon records management system enables the Police Department to manage the records of 
persons who are arrested. 

2 The Tiburon booking system enables the Sheriffs Department to maintain the booking and 
classification records of persons who are arrested. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

36 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 



(4) $19,959 for the replacement of two sliding walls for the 
classroom at County Jail No. 7, located in San Bruno. 3 
Sergeant James states that the Sheriffs Department 
offers educational courses in the above-noted classroom to 
the inmates at County Jail No. 7, but has had to reduce 
the number of courses offered because the sliding walls 
(which separate the classroom into three sections) are 
broken. As a result, according to Sergeant James, only 
one course may be taught at any given time in the 
classroom (as opposed to three different courses in the 
three different sections of the classroom when the sliding 
walls are operational). Sergeant James states that in 
order for courses to return to their optimal level, the 
Sheriffs Department requires that the sliding walls be 
replaced. 

(5) $25,820 for the purchase of six laptop computers and 
four personal computers for use by the Sheriffs 
Department's Investigative Services Unit and 
Backgrounds Unit. 

According to Sergeant James, Sheriff Deputies in the 
Backgrounds Unit would use the four personal computers 
to maintain administrative records, namely Sheriffs 
personnel background information, and perform other 
related responsibilities, through the use of the computers. 
Sergeant James reports that presently there are six 
Sheriff Deputies in the Backgrounds Unit performing the 
above-noted work on one personal computer and two word 
processing terminals. According to Sergeant James, this 
request for four additional computers would enable the 
Backgrounds Unit to expedite the entry, storage and 
retrieval of Sheriffs personnel background information. 

(6) $9,978 for the purchase of six printers at $1,663 per 
printer for use by the Sheriffs Department's Investigative 
Services Unit and Backgrounds Unit. 

(7) $14,870 for the purchase of five cutting torches and 
related accessories to open jail cells in the event of an 
emergency. According to Sergeant James, the Sheriffs 



3 According to Sergeant James, the Sheriffs Department plans to solicit bids for the construction 
contract for the replacement of the two sliding doors upon approval of this proposed ordinance by the 
Board of Supervisors. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

37 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 



Department is currently operating the jail system without 
the benefit of any cutting torches. Sergeant James states 
in the event of an emergency, such as an earthquake or 
other major disaster, presently the Sheriffs Department 
would require either the Department of Public Works or a 
private company to use cutting torches to open cell doors. 
According to Sergeant James, in the FY 1998-99 budget 
submission to the Mayor's Office, the Sheriffs 
Department requested funds to purchase the subject 
cutting torches. Sergeant James states that at that time, 
the Mayor's Office advised the Sheriffs Department to 
use the proposed subject State COPS grant funds, rather 
than General Fund monies to purchase the subject cutting 
torches. 

(8) $7,368 for the purchase of two metal detectors for 
County Jail No. 7 and the Treasure Island jail facility. 
According to Sergeant James, presently County Jail #7 
has one metal detector that requires replacement and the 
Treasure Island jail facility does not have a metal 
detector. 

(9) $6,955 for the purchase of six pieces of equipment, 
including one drill press, one mig welder 4 , one hydraulic 
press, one air compressor, one trash pump and one key 
duplicating machine 5 , for on-site use at County Jail No. 3, 
located in San Bruno. Sergeant James advises that the 
primary reason for this request is that the Department of 
Public Works is unable to respond as quickly as is needed 
to provide the necessary maintenance and emergency 
repairs at County Jail No. 3. 



4 A mig welder or "metal inert gas" welder is more efficient and less expensive than an arc welder, 
according to Sergeant James. 

5 Sergeant James advises that the request for one key duplicating machine is to enable the Sheriffs 
Department to immediately produce Folger-Adam keys (specialized cell door keys) on site at County 
Jail No. 3, rather than endure the 2-3 week delay for their replacement by the Department of Public 
Works. As a result, Sergeant James states that more cells will be kept in service at any given time. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

38 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 



Budget: 



The summary budget for the proposed supplemental 
appropriation of $298,271 in State COPS grant funds is 
as follows: 



Contractual Services 



$173,565 



Data Processing Equipment 
Other Equipment 



35,798 
88.908 



TOTAL 



$298,271 



Comment: 



Recommendation: 



The Attachment, provided by Sergeant James, contains 
the details supporting this budget of $298,271 and 
explanations for each of the requested items. 

The Budget Analyst has reviewed source documentation 
provided as a basis for all proposed equipment purchases. 
As noted above, the proposed grant provides for the 
acquisition of $9,978 for the purchase of six printers at 
$1,663 per printer for use by the Sheriffs Department's 
Investigative Services Unit and Backgrounds Unit, which 
totals 11 employees. Based on the lack of adequate 
justification, the Budget Analyst has concluded that six 
printers are not adequately justified for a total of 11 
employees. We therefore recommend that the number of 
printers be reduced from six to two, at a savings of $6,652 
in COPS grant funds. By reducing this request, the 
$6,652 in COPS grant funds can be appropriated by the 
Sheriff for other needed services. Sergeant James of the 
Sheriffs Department has informed the Budget Anabyst 
that he is unable to provide further justification for the 
additional printers at this time. Consequently, as of the 
writing of this report, Sergeant James can neither agree 
or disagree with this recommendation. 

Amend the proposed ordinance to reduce the request for 
Data Processing Equipment by $6,652, from $35,798 to 
$29,146 to reflect a reduction in the purchase of new 
printers from six to two. The total request would therefore 
be reduced by $6,652, from $298,271 to $291,619. 

Approve the proposed ordinance as amended. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

39 



NOU-13-1998 14:55 



SFSD ADMIN 



415554?e50 P.e2 



Attachment 
Page 1 of 3 



SHERIFF - Supplemental 

Appropriation Request 

11-12-98 


Professional 
Services 


Data 
Processing 
Equipment 


Other 
Equipment 




Computer Program $138,224 
Linkage 






Programming to provide interface 
of Sheriffs booking system with 
Polios records management 
system. Impact approximately 
60,000 defendant bookings 
annually. 










Centralized Records 
Raised Floor 


$15,382 








Install floor panels In area of 
approximately 675 square feet 
provide ADA approved ramp 
access; lump "sum estimate. 










Laundry Upgrades - 
Commercial Grade 
Equipment 






$59,715 




Watnor IO 36.335 




38.335 




Dryars 2Q 8.593 


17.180 




Installation | Lumo Sum 1 6.200 




6700 




Classroom Sliding Doors 


$19,959 I 






Replace two existing hinged 
operable walls 22'x9* with two new 
panel operable waits; lump sum 
estimate. 










Computer Laptops, PCs & 
Printers 


$35,798 

I 






LaottTD*-. I 6@ i 3.050.00 


— 15. ZSC 
7.490 i 

lisn 




PCs 4© 1.865.00 




Pnm«rm 6@ 1.663.00 




Cutting Torches $14,870 




5 @ $2,974 (includes torch, pack, 
and cutting cable) 








MetaUOetectors $7,368 




2 @ $3,684 includes snipping, tax, 
set-up Straining" 










Building Equipment (1 each) 

(includes tax & freightl 




$8,955 




V Drtll Press 824.66 


■ 


-- 






Mio-WaJe*r 1 678.13 




Hydraulic Press 1.384.08 




Air Compressor 


1.008.67 




Key Duplicating 
Machine 


1.383.29 




Engine Dnven 
Trash Puma 


1.686.18 




Subtotals 


$173,565 I $35,798 


$88,908 




GRAND TOTAL 




$298,271 ' 



40 



Attachment 
Page 2 of 3 



REQUEST FOR SUPPLEMENTAL APPROPRIATION OF 1997-98 COPS 
MONEY FOR THE SHERIFF'S DEPARTMENT 



The Sheriffs Department requests a supplemental appropriation for 1997-98 COPS money in the 
amount of $298,271. The supplemental appropriation will be used to purchase services and 
equipment necessary to maintain and improve jail operations. 

COMPUTER PROGRAM LINKAGE 

The Sheriff requests $138,224 for the necessary computer program upgrades to facilitate the 
linkage of the Police Department's Tiburon records management system and the Sheriffs 
Department's Tiburon booking system. This linkage will enable an automated Police and 
Sheriff s joint records management system. The program upgrades requested will provide a 
dynamic interface which will prevent duplication of data-entry by the arresting officer or the 
booking officer. The funds requested would be used to amend the existing contract with Tiburon 
to include this component 

CENTRALIZED RECORDS 

The Sheriff requests $15,382 for the installation of raised floors in the space formerly identified 
as Department 20 in the Hall of Justice. The raised floors are necessary to provide for more 
flexible use of this space. In the fall of 1998, the space will be used to conduct department 
training in the new computer system. Once the computer system is on-line, the space will be 
converted to a centralized records location for the Sheriffs Department Centralizing records 
will provide a more efficient and reliable method of accountability for records in the care and 
custody of the department 

LAUNDRY UPGRADES 

The Sheriff requests $59,715 for laundry equipment needed at County Jail #2. The laundry 
equipment at County Jail #2 is frequently breaking down, causing delays in laundry exchanges in 
both jails at the Hall of Justice and creating a shortage of available linen and clothing. The 
existing washer and two dryers often fail to maintain the temperature level required for sanitizing 
clothes. The resulting inability to keep up with required laundry exchanges violates Title 15 
requirements and the inability to maintain adequate temperatures results in a health hazard. 
Both these concerns interfere with the safe and secure operation of the jail facility. 

COUNTY JAIL #7 CLASSROOM SLIDING DOORS 

The Sheriff requests $19,959 for replacement of the County Jail #7 classroom sliding door. 
CJ#7, located on the San Bruno Compound, is designed to enhance program opportunities to 
better enable prisoners to re-enter the community with knowledge and skills that may reduce the 
instances of repeating criminal behavior. In-dormitory classes are augmented with educational 
classes held in various classrooms in the facility. Our ability to offer such educational classes 
has been reduced due to the disrepair of 2 sets of sliding doors. With the installation of new 
sliding doors, educational programs will be available to more prisoners. The optimal operation 



41 



,MLi-<=ti-;L-«c:n_ 

Page 3 of 3 

of County Jail #7 depends on structured program and educational opportunities for the greatest 
number of prisoners housed in the facility. 

COMPUTER LAPTOPS, PCs AND PRINTERS 

The Sheriff requests $25,820 for the purchase of six laptop and four personal computers for 
investigators assigned to the Investigative Services Unit These investigators are responsible for 
investigating a broad range of incidents, from deaths in custody to citizens' complaints about 
employee conduct The investigative process requires detailed notes and logs to effectively track 
the progress of investigations and maintain control of evidence and other matters which arise 
during the course of the investigations. The laptops would enable the investigators to maintain 
computer notes at the scene thus reducing time spent transposing information from paper to 
computer in the office. The laptops will provide for more timely reports, more timely case 
closure and more timely response to complaints received. Additionally, the purchase of four 
personal computers would enable staff to maintain administrative records and perform other 
related responsibilities. 

The Sheriff also requests $9,978 for the purchase of printers. The Investigative and Background 
Units of the Sheriffs Department are in need of printers to produce quality hard copies of their 
reports. Currently, both units are utilizing printers that are obsolete and do not produce a good 
quality professional product. 

CUTTING TORCHES 

The Sheriff requests $14,870 for the purchase of five cutting torches and related accessories 
which are necessary to insure the Department's ability to open cells in the event of a major 
disaster. Of the Department's 6 jail facilities, 3 require individual cell doors to be opened 
mechanically. All cells in the older three jails must be individually opened and closed. If a 
disaster occurs, the locking mechanism may fail, requiring torches to cut open cell doors. 

METAL DETECTORS 

The Sheriff requests $7,368 for the purchase of two metal detectors for County Jail #7 and the 
Treasure Island jail facility. Upon entrance into the housing facilities of these jails, visitors must 
go through metal detectors. Metal detectors assist in the reduction of contraband items being 
accessible to the jail population. Items such as firearms, knives and various other metallic 
instruments can be detected by this devise which instantly alert staff to a potentially harmful 
situation as these items can pose imminent danger to staff as well as prisoners. 

EQUIPMENT FOR THE SAN BRUNO COMPOUND 

The Sheriff requests $6,955 for the purchase of six pieces of equipment needed for County Jail 
#3 at San Bruno. County Jail #3 is the oldest operating jail in the State of California. The 
building is in despair and repairs are constant From analysis of the building crew, the following 
equipment is needed for maintenance and emergency situations that may arise: drill press, mig 
welder, hydraulic press, air compressor, trash pump and key duplicating machine. 



42 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 



Item 8 - File 98-1828 

Department: 

Item: 



Amount: 
Source of Funds: 
Description: 



Public Utilities Commission (PUC) 

Ordinance appropriating $590,000 from the Clean Water 
Program Fund balance to Claims and Judgements and 
authorizing settlement of litigation between Peter and 
Barbara Winkle stein and the City and County of San 
Francisco, Superior Court No. 980-740. 

$590,000 

PUC Clean Water Program Fund 

The proposed ordinance would serve the dual purpose of 
appropriating $590,000 to settle litigation against the 
City as well as authorizing the City Attorney to settle the 
litigation with the plaintiffs Peter and Barbara 
Winkelstem with a payment by the City- to the 
Winkelstein's of $590,000. 

On December 11, 1995, the sandy soil underlying the 
hillside between 24 th Avenue and El Camino del Mar in 
the Seacliff District of the City was eroded by storm water 
flowing from a failed brick sewer that crossed beneath the 
slope. The erosion resulted in, among other damages, loss 
of the front yard and garden of the Winkelstein's 
residence, undermining the foundation and causing other 
structural damage to the Winkelstein's residence. 

The PUC declared an emergency on December 11, 1995. 
The Board of Supervisors approved a resolution 
authorizing the emergency repair work on the brick sewer 
in January of 1996 (Resolution No. 84-96). According to 
Mr. Everett Hintze at the PUC, the sewer repair work 
was completed on October 16, 1996 at a total estimated 
cost of $8.2 million, all of which was reimbursed by the 
Federal Emergency Management Agency (FEMA). 

The proposed payment of $590,000 would settle all claims 
by the Winkelstein's against the City and would pay for 
repairs to their residence, garden and related costs. In 
consideration for the proposed settlement, the 
Winkelstein's have agreed to dismiss the City with 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

43 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 



Comment: 



prejudice from the referenced litigation, to fully release 
the City from all claims arising from the Seacliff incident 
and to assign to the City all claims that the Winkelstein's 
have against co-defendants to the action. 

According to Ms. Louise Simpson of the City Attorney's 
Office, in light of the potential exposure that the City 
would face should this case proceed to trial, plus the 
expense of trial itself, the proposed settlement payment of 
$590,000 is reasonable. Ms. Simpson advises that if the 
Finance Committee needs additional information 
regarding the basis for the proposed settlement, such 
information should be addressed by the City Attorney's 
Office in executive session. 



Recommendation: 



Approval of this proposed ordinance is a policy matter for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

44 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 

Item 9 -File 98-1653 

Department: Department of Real Estate 

Item: Ordinance amending the Administrative Code to add Section 23.26A 

to authorize the Director of Property to terminate leases or extend 
leases for lessees in buildings to be acquired by the City by eminent 
domain for the Moscone Center Expansion Project. 

Description: In March, 1996, San Francisco voters approved a ballot measure to 
authorize issuance of lease revenue bonds, in an amount not to 
exceed $157,500,000, for the development of a new facility to provide 
additional convention meeting and exhibit space to supplement the 
Moscone Center. The proposed new facility would contain 300,000 
square feet for such meeting and exhibit space. The current 
estimated total project cost for the proposed Moscone Convention 
Center Expansion Project is approximately $319,000,000. 

The Board of Supervisors approved resolution 697-98 (File 98-1278) 
on August 24, 1998, authorizing the acquisition, by eminent domain, 
of the properties listed in the table below, for the Moscone Center 
Expansion Project. 



Property' 



Appraised Fair Total Square 
Market Value 1 Foota°e of Land 



Existing Improvements 



1. Hearst Corporation 
Parking Lot - 860 
Howard Street 



2. 325 Minna Street 



3. 150 4 m Street 



S15,000,000 



4,000,000 



38,000,000 



109,977 



13,999 



55,250 



Asphalt Paving, chain link fence and 
parking control equipment - used as a 
fee parking lot for approximately 450 
automobiles 

Two story office and retail building of 
approximately 28,500 rentable square 
feet; three lessees. 

Six story office and retail building, 
including a rentable area of 
approximately 275,000 square feet of 
office and retail area and basement 
parking for approximately 140 
automobiles; 25 lessees. 



Total 



S 57.000,000 



179.226 



1 Based on the fair market value appraisals shown in the table above, the City has placed a total of 
$57,000,000 in escrow pending the Court determination of the amounts the City should pay for the 
properties to be acquired by eminent domain. The source of funds for the acquisition of these 
properties is previously appropriated Moscone Center Expansion Project funds. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



45 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 



Under the "Order of Immediate Possession" obtained by the City 
in the Superior Court on September 17, 1998, the City plans to 
take possession of the properties listed in the table above in 
January, 1999. The Director of Property will then assume 
authority over the leased premises. Lastly, the court order enables 
the City to take possession of the tenant's leasehold interests, on 
March 31, 1999. Currently, the Moscone Center Expansion Project 
schedule calls for demolition of the properties listed in the table 
above, beginning on July 1, 1999. The Moscone Center Expansion 
Project is currently scheduled to be completed in February, 2003. 

Under Administrative Code Section 23.26, if the City acquires real 
property for a public project that is under lease to a hold-over 
tenant, the Director of Property may negotiate a new lease for the 
property with the same lessee at a fair-market rental on a month- 
to-month or shorter basis, for a length of time that does not 
interfere with the public project, subject to approval by the Board 
of Supervisors. 

According to Mr. Steve Alms, Semor Real Property Officer for the 
Department of Real Estate, when the City acquires property by 
eminent domain, the City is liable for relocation expenses of 
businesses and residents and, potentially, for any claims by 
lessees for the "loss of goodwill" due to the relocation. 

This proposed ordinance would: 

• Authorize the Director of Property, without further approval 
of the Board of Supervisors, to terminate any lease in the 
properties to be acquired by eminent domain for the Moscone 
Center Expansion Project when that tenant delivers 
possession of the premises to City. The lease would terminate 
as if it had otherwise expired, and rent would be forgiven. 
This would eliminate the risk to the tenants of paying rent in 
two locations at once. This provision would apply only if the 
tenant delivers possession of the premises after the City takes 
possession of the landlords' interests, but before March 31, 
1999; and, 

• Authorize the Director of Property to act in his discretion and 
without further approval by the Board of Supervisors, to 
extend the lease terms and obligations of any leases in the 
properties after March 31, 1999, on a month-to-month or 
shorter basis, provided that the extension does not interfere 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

46 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 



Comments: 



with the properties' demolition as part of the Moscone Center 
Expansion Project. 

The proposed legislation would expire on December 31, 1999, at 
which time the Director of Property would no longer have the 
authority described above over the properties to be acquired for 
the Moscone Center Expansion project. 

According to Mr. Alms, Mr. Anthony DeLucchi, the Director of 
Property has recommended this legislation in order to meet the 
City's statutory obligation to minimize the adverse effect on 
tenants of displacement, to provide relocation benefits, and to 
minimize the City's liability for damages to the tenants for 
goodwill. Because the Department of Real Estate must 
accommodate the diverse needs and schedules of as many as 30 
tenants which will be engaged in lease negotiations for their 
relocation, the Department believes that the Director of Property 
requires the flexibility to enter into separate arrangements with 
each individual tenant without having to secure Board of 
Supervisors' approval by ordinance for each individual lease 
termination or extension. 

1. The attachment to this report, provided by the Department of 
Real Estate, provides a listing of the 30 current tenants of the 
three properties to be acquired by eminent domain for the 
Moscone Center Expansion Project. 



2. According to Mr. Alms, total rent paid by the 30 tenants of the 
properties to be acquired for the Moscone Center Expansion 
Project amounts to approximately $550,000 per month. Mr. Alms 
indicates that five of the largest tenants representing 
approximately 150,000 square feet, have expressed interest in 
extending occupancy at the properties through June 30, 1999. Mr. 
Alms also indicates that, in the current market, it is unlikely that 
a large number of tenants will deliver possession of their premises 
to the City prior to March 31, 1999. Therefore, any loss of rental 
income to the City, due to early termination of leases and 
forgiveness of rent, will be more than offset by additional rental 
income due to extension of leases beyond the March 31, 1999 date 
when the City is scheduled to take possession of the leased 
premises. 

Recommendation: Approval of the proposed ordinance is a policy matter for the 
Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

47 



Attaclimejii 



MOSCONE CENTER EXPANSION PROJECT 

TENANT ROSTER 

10/20/98 



150 FOURTH STREET 



Tenant Area 



1 Bank of America 4,129 



2 Boise Cascade Office Products Corp. a Delaware Corporation | 2,036 



3 i Capital Business Group, Inc. dba Capital Resource Group j 1,990 



Chelsea Development Company, LP Successor in Interest to Harold J. Moose I 750 



Chevy's, Inc. a California Corporation Wholly Owned Subsidiary of JWC 
Acquisition II, Inc., a Delaware Corporation 



8,486 



Ed Rathmann and Glenn Thompson, a California General Partnership dba Willow 

Street Wood-Fired Pizza Successor in Interest to Fresh Choice, Inc., a Delaware 8,120 

Corporation 



7 Elsie S. Nishkian Corporation Successor in Interest to Byron Nishkian 750 



8 Executive Suites, Inc. a California Corporation '■ 2,020 



9 First American Title Insurance Company : 7,210 



10 GTE Mobilnet of California Limited Partner ship a California Limited Partnership Roof/ Gara ge 



11 



Harding Lawson Associates Group, Inc. a Delaware Corporation 4,272 



12 



Jitters Espresso Bars, Inc., a California Corporation I 807 



13 



Jones Lang Wooton (Building Manag er) 



14 



Main Street California, Inc. dba TGI Friday's an Arizona Corporation 7,600 



15 



MCI International, Inc. a Delaware Corporation 1 1 ,308 

Metropolitan Fiber Systems of San Francisco, Inc. 125 



16 



17 



Millennium Entertainment Corp ora tion 1,385 



18 



Pacific Bell Directory Services , 66,486 



1 9 Regents of the University of California 28,945 



20 SiteLine Communications. Inc. a California Corporation 300 



21 SRE San Francisco Retail, Inc. a Delaware Corporation (SONY) [ 7,208 



22 State Compensation Insurance Fund a public enterprise fund 47,539 



23 Sumitomo Bank of California a California Corporation 41,570 



24 The Chronicle Publishing Company a Nevada Corporation 9,807 



25 Zim-Amehcan Israeli Shipping Company, Inc. 995 



26 Westview Press 807 



1 HOLLAND COURT 



Nishkian & Associates 5,823 



2 Cadillac Bar & Grill 7,835 



3 California State Department of Corrections 14,842 



860 HOWARD STREET 



1 Allright Cal, Inc. (Parking Operator) 



, _ Department of Real Estate 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 

Item 10 - File 98-1659 



Department: 
Item: 



Description: 



All City Departments 

Ordinance amending Part 1, Chapter 16, Article l,of the 
San Francisco Municipal Code (Administrative Code) by 
amending Section 16.6, relating to membership by City 
Departments in professional, trade, and other 
organizations, and repealing Sections 16.6-1, 16.6-2, 16.6- 
2.1, 16.6-3, 16.6-4, 16.6-5, 16.6-6, 16.6-7, 16.6-8, 16.6-9, 
16.6-10, 16.6-11, 16.6-12, 16.6-13, 16.6-14, 16.6-15, 16.6- 
16, 16.6-17, 16.6-17.1, 16.6-17.2, 16.6-17.3, 16.6-17.4, 
16.6-19, 16.6.20, 16.6-21, 16.6-22, 16.6-23, 16.6-24, 16.6- 
25, 16.6-25, 16.6-26, 16.6-27, 16.6-28, 16.6-29, 16.6-30, 
16.6-31, 16.6-32, 16.6-33, 16.6-34, 16.6-35, 16.6-35.1, 16.6- 
36, 16.6-37, 16.6-38, 16.6-39, 16.6-40, 16.6-41, 16.6-41, 
16.6-42, 16.6-43, 16.6-44, 16.6-45, 16.6-46, 16.6-47, 16.6- 
47.1, 16.6-59, 16.6-60, 16.6-61 and 16.6-62, authorizing 
membership in various organizations, re-numbering 
Sections 16.6-48, 16.6-49, 16.6-49.1, 16.6-49.2, 16.6-49.3, 
16.6-51, 16.6-53, 16.6-54, 16.6-55, 16.6-56, 16.6-57 and 
16.6-58 as new Sections 16.6-1, 16.6-2, 16.6-3, 16.6-4, 
16.6-5, 16.6-6, 16.6-7, 16.6-8, 16.6-9, 16.6-10, 16.6-11 and 
16.6-12 respectively, and providing for continuation of 
current and existing memberships. 

Currently, Sections 16.6-1 through 16.6-47.1 and 16.6-59 
through 16.6-62 lists 57 City boards, commissions, and 
departments and the membership organizations in which 
each is authorized to become a member. 



Under the proposed ordinance, instead of specifying City 
boards, commissions and departments and the 
organizations that each may belong to, the proposed 
language would be added to Section 16.6 of the 
Administrative Code: 



"City Departments and their duly authorized officers and 
employees may acquire and maintain membership in 
professional, trade and other organizations, where such 
membership is in the interest and for the benefit of the 
City and County as follows: 

By May 1 st of each year, each board, commission and 
department head of the City and County shall submit to 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



49 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 



Comments: 



Recommendation: 



the Mayor, Controller and the Board of Supervisors a 
listing for the next fiscal year of each and every 
organization in which the board, commission or 
department wishes to be a member, including a listing of 
the membership costs for each organization in which 
membership will be sought. The listing shall also specify 
which organizations have been added to or deleted from 
the previous year's list. The proposed memberships shall 
be deemed approved unless specifically disapproved by 
resolution of the Board of Supervisors introduced within 
60 days of submission of the department's list." 

In addition to adding the above-quoted language, which 
provides a general authorization for City boards, 
commissions, and departments to be members of various 
organizations, which each board, commission, and 
department determines to be in the best interest of the 
City, the proposed ordinance deletes Sections 16.6-1 
through 16.6-62 which list 57 City boards, commissions 
and departments and which specifies the membership 
organizations for which each has authorized 
memberships. 

1. According to Ms. Erin McGrath in the Office of the 
Author, the purpose of this proposed legislation is to 
simplify the process of authorizing membership in 
membership organizations, which is cumbersome if 
departments want to drop membership in an approved 
organization, add new organizations to the approved fist, 
or if organizations change names. 

2. The monies needed to fund all memberships would 
still be subject to Board of Supervisors approval. 

Approval of the proposed ordinance is a policy matter for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



50 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 

Item 11 - File 98-1747 



Department: 
Item: 



Description: 



Comments: 



San Francisco Law Library 

Resolution increasing civil filing fees and appearance fees 
as provided for in State Business and Professions Code 
Sections 6321, 6322 and 6322.1 for operation of tbe Law 
Library. 

The proposed resolution would increase the fees paid by 
all parties to a civil suit by $3 per filing, from $21 to $24, 
effective January 1, 1999. The revenues from the $3 fee 
increase would be remitted by the Trial Courts to the San 
Francisco Law Library. 

Law Library civil filing fees currently total $21 per filing. 
The amount of this civil filing fee, which is allocated to 
the Law Library by the Trial Courts, is included in both 
the total civil filing fees of $193 in Superior Court and $98 
in Municipal Court. Under the proposed resolution, the 
civil fifing fees allocated by the Superior and Municipal 
Courts to the Law Library would increase by $3, from $21 
to $24, thereby increasing total filing fees from $193 to 
$196 in Superior Court and from $98 to $101 in Municipal 
Court, pertaining to filing fees related to a civil law suit. 

Ms. Marcia Bell of the Law Library projects that the 
proposed $3 increase in civil filing fees will generate 
approximately $146,196 annually in increased fee 
revenue ($3 x 48,732 projected annual civil filings). Ms. 
Bell advises that there were approximately 48,945 civil 
filings in the San Francisco Superior and Municipal 
Courts in FY 1997-98, which generated a total of 
$1,027,845 in filing fee income for the Law Library. Ms. 
Bell also advises that the estimated 48,732 civil filing fees 
in FY 1998-99 assumes a modest reduction in the number 
of filing from FY 1997-98. 

1. Ms. Bell advises that County Law Libraries are 
established in accordance with State law. Ms. Bell 
reports that State Business and Professions Code Section 
6322.1 permits the Board of Supervisors to annually 
increase the Law Library civil filing fee by $3 per filing, 
as long as the increase is excluded from the definition of 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

51 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 



total civil filing fee. Ms. Bell states that, if the fee 
increase was included in the definition of the total fifing 
fee, the effect would be to reduce the portion of the total 
civil filing fee transmitted to the State Controller for 
deposit in the Trial Court Trust Fund. The intent of 
Section 6322.1 is to permit a Law Library fee increase 
without affecting the Trial Court Trust Fund. 

2. Ms. Bell reports that Law Library civil filing fees were 
last increased in 1996, when they were increased by S3, 
from $18 to $21. At the time, Law Library staff was not 
able to project how many years that the $3 increase would 
provide adequate revenues to support Law Library 
operations. Ms. Bell advises that if the proposed $3 fee 
increase is approved, she does not know for how many 
years the new $24 fee would provide adequate income for 
the Law Library, so she cannot predict in what year the 
next fee increase would be requested. 

3. Mr. Madden of the Controller's Office advises that the 
Law Library is a quasi-public institution. As such, Mr. 
Madden reports that State law establishes that civil filing 
fee revenues are to be disbursed by the Law Library 
Board of Trustees and are not subject to appropriation 
approval by the Board of Supervisors. An annual General 
Fund contribution to support of the Law Library is 
approved by the Board of Supervisors, but the balance of 
the Law Library's budget is subject only to approval by 
the Law Library Board of Trustees. In FY 1998-99, Ms. 
Bell states that total Law Library budgeted revenues are 
as follows: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

52 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 

Revenue Source Projected FY 1998- 99 Amount 

General Fund $262,599 

Civil Filing Fees 1,092,846 

Inter-Library Loan Fees 66,780 

Checking & Savings Interest 725 

Photocopy Fees 24,000 

Fax Fees 9,000 

Miscellaneous Income 500 

Automation Project Fund* 210,423 

Earnings on Reserve Fund** 38,375 

Total $1,705,248 

*Ms. Bell states that the Law Library's conversion from 
manual to automated library and reference systems will 
be funded by a one-time payment received last } r ear from 
the Superior Court to make up for amounts due from prior 
years related to the civil filing fee allocations to the Law 
Library. 

**Ms. Bell also states that all Law Libraries in California 
maintain reserve investments, which are part of their 
capital assets. 

As noted in the above table, the FY 1998-99 General Fund 
budget, as previously approved by the Board of 
Supervisors, is $262,599. The non-General Fund portion 
of the Law Library's budget totals $1,442,649 ($1, 705,248 
less $262,599). 

Comment: In the attached memorandum, Ms. Bell states that the $3 

"fee increase is necessary because filing fee income is 
declining due to a decrease in the number of civil filings." 
This memorandum also contains the Law Library's FY 
• 1998-99 non-General Fund budget based on the proposed 
$3 civil filing fee increase. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

November 18, 1998 Finance Committee Meeting 



Recommendation: 



Approval of the proposed resolution is a policy matter for 
the Board of Supervisors. 



*7<7\- 



Harvey M. Rose 



cc: Supervisor Teng 
President Kaufman 
Supervisor Newsom 
Supervisor Ammiano 
Supervisor Bierman 
Supervisor Brown 
Supervisor Katz 
Supervisor Leno 
Supervisor Medina 
Supervisor Yaki 
Supervisor Yee 
Clerk of the Board 
Controller 
Gail Feldman 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

5U 



Nov-06-98 13:24 San Francisco Law Library p Q2 

Attachment 
*$:m Irimrtscn Hain Xihrary i^age 1 of 2 

401 VAN NESS AVENUE. ROOM 400 
SAN FRANCISCO, CA B41 02-4SS2 

Telephone (415) 554-6621 
Facsimile (415)554-6620 



To: Harvey Rose, Legislative Budget Analyst riffrf'^ 
From: Marcia R. Bell, Law Librarian A/V 



4 V 

Data: 11/06/98 

r« Law Library Filing Fee Resolution 



W 



The San Francisco Law Library Board of Trustees requests that the Board of 
Supervisors approve a resolution increasing the Law Library share of Municipal and 
Superior Court filing fees from $21 .00 to $24.00 effective January 1 , 1 999. This fee 
increase is necessary because filing fee income is declining due to a decrease in the 
number of civil filings. The $3.00 increase will offset declining revenue. 

The filing fee increase does not impact the general fund or the Trial Court Trust Fund. 

Filing fees fund Law Library operating expenses. The last fee increase was effective 
January 1996 which increased filing fee revenues in fiscal year 1996-97 (the first full 
year after the 1996 fee increase), reversing a steady decline in filings and fee 
revenue. The following year the decline in civil filings resumed causing a 6.2% 
decrease in the Library's filing fee income for the year ending June 30, 1998. Four 
months into the current fiscal year fee income is 5% lower than the same period last 
year. Declining fee revenues will not permit the Law Library to keep pace with 
ordinary operating expenses nor enable it to fund special projects. Periodic fee 
increases are necessary to generate sufficient income to fund Law Library expenses. 
The rate of inflation for legal publications exceeds that of the general economy, yet 
legal materials must be updated to maintain currency as laws are amended and 
revised continually. For example, supplementation costs for West's Legal Forms 
increased 115% and Federal Practice and Procedure by Wright and Miller increased 
68.67% between 1995 and 1996. 

San Francisco compared to other County Law Libraries: 
Law Library filing fee rates are lower in San Francisco than those of 16 other 
California counties, although our Law Library has the second largest collection in the 
state. Most metropolitan counties receive $23 to $26 per filing. San Francisco 
receives $21 per filing. 

Deadline; If the increase is not approved by December 31 , 1998, the Law Library 
cannot receive the benefits of a fee increase until January 2000. 



Btfees\1999incVirTnemoi 1 .96 

55 



98 1 A : 35 



Francisco Law Library 



Law Library Budget FY 1998-99 
(Non-General Fund) 



Attachment 
Page 2 of 2 



Filing Fee Income: 


Original Budget 


$3 Increase 


Revised Budget 


Superior Court 


684,360 


46,438 


730,798 


Municipal Court 


239,042 


23.006 


362,048 


Total Filing Fees 


1.023,402 


69444 


1.092,846 


Miscellaneous Income: 








Interlibrary Loan Fees 






66,780 


Investment Interest 






38.375 


Checking & Savings Interest 






725 


Copiers 






24.000 


Fax 






9.000 


Miscellaneous 






500 


Total Miscellaneous Income 






139.380 


Automaton Project Fund 






210,423 


Total Revenue 






1.442.649 


Operating Expenses: 








Salaries 






395.662 


Health Insurance 






31.047 


Retirement Fund 






60.239 


Books & Multimedia Materials 






456.539 


Bookbinding 






12.154 


Consultant Services 






6,600 


Contractural Services 






6,600 


Equipment Rental 






223 


Furniture & Equipment 






4,200 


Insurance Fidelity 






334 


Insurance Liability 






7.700 


Insurance Valuable Papers 






5.225 


Insurance Workers' Comp 






4,394 


Materials & Supplies 






7.058 


Miscellaneous 






3,600 


Payroll Taxes 






34,703 


Postage & Delivery 






1.200 


Public Relations 






2,800 


Rent Branch 






58.819 


Repairs & Maintenance 






1.000 


Telephone 






1,500 


Training & Prof. Affiliations 






13,319 


Westlaw Expenses 






1.000 


Automation Project 






326.733 


Total Expenses 






1,442.649 
- 



56 



2S- 



hi 



BOARD of SUPERVISORS 




401 Van Ness Avenue, Room 308 

San Francisco 94102-4532 

Tel. No. 554-5184 

TDD No. 554-5227 



NOTICE OF CANCELLED MEETING 

FINANCE COMMITTEE 

SAN FRANCISCO BOARD OF SUPERVISORS 



DOCUMENTS DEPT. 

NOV 19 1998 

AN FRANCISCO 

PUBLIC LIBRARY 



NOTICE IS HEREBY GIVEN That the regularly scheduled Finance 
Committee meeting of Wednesday, November 25, 1998, at 1:00 p.m., at 
401 Van Ness Avenue, Room 410, has been cancelled. 



loria L. Young 
Clerk of the Board 








City and County of £an Francisco 

Meeting Agenda 

^Finance Committee 

Members: Supervisors Mabel Teng, Barbara Kaufman, Gavin Newsom 
Clerk: Joni Blanc hard 



Veterans Building 
401 Van Ness Avenue, 
Room 308 
San Francisco, CA » 

94102-4532 frf 4ft »'W 
DOCUMENTS DEPT. -'Ay/s 

NOV 3 o 

r»AM co&l 



tf 



Wednesday, December 02, 1998 



Iff 



1:00 PM 



Regular Meeting 



VeJtWtrhsrB'u'iiaihg 

401 Van Ness Ave., Room 410 

San Francisco, CA 94102 



CONSENT AGENDA 



All matters listed hereunder constitute a Consent Agenda, are considered to be routine and will be 
acted upon by a single roll call vote of the Committee. There will be no separate discussion of these 
items unless a member of the Committee so requests, in which event the matter shall be removed from 
the Consent Agenda and considered as a separate item. 



981651 [Reserved Funds, Public Transportation Commission] 

Hearing to consider release of reserved funds, Public Transportation Commission (Resolution No. 
529-91, File 94-91-4), in the amount of $296,000, to continue project implementation activities for 
the renovation of Presidio Division Operator Training Facilities. (Public Transportation Commission) 

10/5/98, RECEIVED AND ASSIGNED to Finance Committee. 



981652 [Reserved Funds, Public Transportation Commission] 

Hearing to consider release of reserved funds, Public Transportation Commission (Resolution No. 
529-91, File 94-91-4), in the amount of $400,000, to continue project implementation activities for 
the Potrero Facility Improvement Program/Roof and Drainage Renovation. (Public Transportation 
Commission) 

10/5/98, RECEIVED AND ASSIGNED to Finance Committee. 



981684 [Reserved Funds, Fire Department] 

Hearing to consider release of reserved funds, Fire Department (1986 Fire Protection Bond interest 
earnings. Ordinance No. 127-96) in the amount of $44,500, to fund a portion of AWSS Ashbury 
Water Storage Tank rehabilitation project. (Fire Department) 

10/5/98, RECEIVED AND ASSIGNED to Finance Committee. 



981886 [Reserved Funds, Recreation and Park Department] 

Hearing to consider release of reserved funds. Recreation and Park Department (1992 Golden Gate 
Park Infrastructure Bond Fund proceeds. Ordinance 368-97), in the amount of $8,166,908, to fund 
the Bowling Green Drive Zone Projects in the Golden Gate Park. (Recreation and Parks Department) 

1 1/6/98, RECEIVED AND ASSIGNED to Finance Committee. 



City and County of San Francisco 



Printed at 11:56 AM on 11/23/98 






Finance Committee 



Meeting Agenda 



Wednesday, December 02, 199S 



981890 [Reserved Funds, Fire Department] 

Hearing to consider release of reserved funds, Fire Department, in the amount totaling $800,000 
($341,613 from 1992 Fire Protection Bond proceeds. Ordinance No. 430-96; $458,387 from FEMA 
Grant, Resolution No. 1026-97), for renovation work at Fire Station No. 29. (Department of Public 
Works) 

1 1/9/98, RECEIVED AND ASSIGNED to Finance Committee. 



981843 [Prop J Contract. Victim Witness Services) 

Resolution concurring with the Controller's certification that assistance to certain victims of crime 
and education in community anti-street violence can be practically performed for the District 
Attorney's Victim Witness Assistance Program by a private contract for a lower cost than similar 
work services performed by City and County employees. (District Attorney) 

10/30/98, RECEIVED AND ASSIGNED to Finance Committee 



981879 [Emergency Repair. 19th Street Sewer) 

Resolution approving the expenditure of funds for the emergency work to replace the structurally 
inadequate sewer on 19th Street from Guerrero to Dolores Streets - SI 32,602. (Public Utilities 
Commission) 

1 1/4/98, RECEIVED AND ASSIGNED to Finance Committee. 



981880 [Emergency Repairs, Moccasin Newark Tower Footings/Corral 
Hollow Access Roads] 

Resolution authorizing expenditure of funds for emergency restoration of supporting soil around 
Moccasin Newark Transmission Line Tower footings and repair to access roads in Corral Hollow 
$750,000. (Public Utilities Commission) 

(Fiscal impact.) 

1 1/4/98, RECEIVED AND ASSIGNED to Finance Committee. 



981877 [Healthcare for Indigents Program] 

Resolution authorizing adoption of the County Description of Proposed Expenditure of California 
Healthcare for Indigents (CHrP) funds for fiscal year 1998-1999 and that the President or duly 
authorized representative of the Board of Supervisors of the City and County of San Francisco can 
certify the County Description of Proposed Expenditure of CHIP Funds for fiscal year 1998-1999. 
(Department of Public Health) 

1 1/4/98. RECEIVED AND ASSIGNED to Finance Committee 



City and County of San Francisco 



Printed at 11:56 AM on 11/21A)S 



Finance Committee 



Meeting Agenda 



Wednesday, December 02, 1998 



10. 981881 [Transfer to General Fund - PUC/Hetch Hetchy Surplus Funds] 

Resolution concurring with the Public Utilities Commission's fact finding that a fund surplus 
($42,703,273) exists in the utilities which can be transferred to the General Fund. (Public Utilities 
Commission) 

(Fiscal impact.) 

1 1/4/98, RECEIVED AND ASSIGNED to Finance Committee. 



11. 981689 [Acceptance of Easement Deed] 

Resolution authorizing the Director of Property to accept a drainage easement deed over private 
property (Block 4991, Lots 108-1 10, Le Conte Drainage Easements), in the Bayview Hill 
Subdivision. (Real Estate Department) 

10/7/98, RECEIVED AND ASSIGNED to Finance Committee. 



12. 981841 [Quitclaim Deed, Assessor's Block 3593, Lot 40] 

Resolution authorizing and directing the execution of a Quitclaim Deed from the City and County of 
San Francisco to the San Francisco Unified School District, a political subdivision of the State of 
California, for a portion of Assessor's Block 3593, Lot 40, formerly Treat Avenue north of 20th 
Street and adopting findings pursuant to Planning Code Section 101.1. (Real Estate Department) 

10/28/98, RECEIVED AND ASSIGNED to Finance Committee. 



REGULAR AGENDA 



13. 981790 [Airport Concession Lease] 

Resolution approving Boarding Areas "B" and "C" Principal Concessions Retail Lease between 
Pacific Gateway Concessions, LLC and the City and County of San Francisco, acting by and through 
its Airport Commission. (Airport Commission) 

10/26/98, RECEIVED AND ASSIGNED to Finance Committee. 



14. 981791 [Airport Lease Agreement, Nippon Cargo Airlines] 

Resolution approving lease agreements for cargo warehouse space in the North Field Cargo Facility 
between Nippon Cargo Airlines Company, Inc. and the City and County of San Francisco, acting by 
and through its Airport Commission. (Airport Commission) 

10/26/98, RECEIVED AND ASSIGNED to Finance Committee. 



15. 981876 [Amendment to Municipal Executives Association MOU] 

Ordinance implementing the provisions of an amendment to the Memorandum of Understanding 
between the Municipal Executive Association and the City and County of San Francisco pursuant to 
Article 111.E.3, Subsections (B.l) and (E) of the Memorandum of Understanding, to provide internal 
adjustments for the time period beginning July 1, 1998 through June 30. 2001. (Department of 
Human Services) 

1 1/4/98, RECEIVED AND ASSIGNED to Finance Committee. 



City and County of San Francisco 



Printed at 11:56 AM on 11/23/98 



Finance Committee 



Meeting Agenda 



Wednesday, December 02, I99S 



16. 981874 (Appropriation, Juvenile Probation] 

Ordinance appropriating $607,007, Juvenile Probation Department, of Federal Temporary Assistance 
to Needy Families (TANF) for salaries, training, professional services, materials and supplies, 
facilities maintenance and repairs, equipment and services of other departments, for fiscal year 1998- 
1999; placing $126,845 on reserve. (Controller) 

(Fiscal impact.) 

1 1/4/98, RECEIVED AND ASSIGNED to Finance Committee. 

17. 981875 [Appropriation. Juvenile Probation) 

Ordinance appropriating $412,604, and rescinding $142,853, from Overhead-Budget and $137,045 
from Professional Services to provide funds for salaries, fringe benefits, equipment, services of other 
departments and the creanon of one ( 1 ) position for the Department of Juvenile Probanon for fiscal 
year 1998-1999. (Controller) 

(Fiscal impact; companion measure to File 981882.) 

1 1/4/98, RECEIVED AND ASSIGNED to Finance Committee. 



18. 981882 [Annual Salary Ordinance Amendment. Juvenile Probation) 

Ordinance amending Ordinance No. 243-98 (Annual Salary Ordinance. 1998-1999). Juvenile 
Probation Department, reflecting the creation of one posinon (Class 1372 Special Assistant XVIII). 
(Department of Human Resources) 

(Companion measure to File 981875.) 

1 1/4/98, RECEIVED AND ASSIGNED to Finance Committee. 



19. 981926 [Citywide Emergency Radio System Financing] Mayor 

Resolution approving the issuance of lease revenue bonds of the City and County of San Francisco 
Finance Corporation; approving the execution and delivery of a first amendment to the site lease 
agreement between the City and County, as lessor, and the City and County of San Francisco Finance 
Corporation, as lessee, relating to certain police and fire facilities located in the City (as further 
described in this resolution): approving the execution and delivery of a first amendment to lease and 
option to purchase between the Corporation, as lessor, and the City, as lessee, relating to the 
property; approving the execution and deliver.- of a first supplemental indenture of trust among the 
corporation, the City and the Trustee; approving the execution and delivery of a continuing 
disclosure certificate relating to said bonds, ratifying previous acnons taken in connection with the 
foregoing matters; adopting findings under the California Environmental Qualm- Act and findings 
pursuant to Planning Code Section 101.1; and authorizing the taking of appropriate acnons in 
connection therewith. 

(Fiscal impact.) 

1 1/16/98, RECEIVED AND ASSIGNED to Finance Committee. 



City and County of San Francisco 



Printed at 1 1:5- AM on 1 1/23AS 



Finance Committee 



Meeting Agenda 



Wednesday, December 02, 1998 



20. 981849 [Appropriation, Public Library] Mayor 

Ordinance appropriating S250.000 of 1988 Public Library improvement bond interest earnings to 
capital improvement projects for the Public Library for fiscal year 1998-1999. 

(Fiscal impact.) 

1 1/2/98, RECEIVED AND ASSIGNED to Finance Committee. 



21. 981850 [Membership in Organizations] 

Ordinance amending Administrative Code Section 16.6-47-1 relating to Police Department 
memberships by adding specified organizations. 

(Amends Section 16.6-47-1.) 

1 1/2/98, RECEIVED AND ASSIGNED to Finance Committee. 



Mavor 



22. 981887 [Management Agreement for City Hall Cafe] 

Resolution authorizing the execution and Management Agreement for a cafe on the ground floor of 
City Hall with L & L, a Partnership. (Real Estate Department) 

1 1/6/98, RECEIVED AND ASSIGNED to Finance Committee. 

23. 981952 [Real Property Lease, City Hall Post Office] 

Resolution authorizing a lease of real property at City Hall with the United States Postal Service. 
(Real Estate Department) 

1 1/17/98, RECEIVED AND ASSIGNED to Finance Committee. 



24. 981889 [Public Auction - Tax-defaulted Real Property] 

Resolution authorizing Tax Collector to sell at public auction certain parcels of tax-defaulted real 
property. (Treasurer- Tax Collector) 

1 1/9/98, RECEIVED AND ASSIGNED to Finance Committee. 



25. 



981810 [New Jobs Tax Credit Expansion] Supervisors Kaufman. 

Katz. Leno 

Ordinance amending Municipal Code Part III, Sections 906B and 1005.6 to add two additional years 
of tax credits for new jobs created on or after January 1, 1998. 

(Amends Part III, Sections 906B and 1005.6.) 

10/26/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 1 1/25/1998. 



City and County of San Francisco 



Printed at 11 lS7 AM on 11/23/98 



Finance Committee 



Meeting Agenda 



Wednesday, December 02, 1998 



26. 



981812 [Surplus Business Tax Revenue Credit] 



Supervisors Kaufman. 
Leno 



Ordinance amending Municipal Code Part III by adding Section 906E, creating a S500 payroll 
expense tax credit to taxpayers for any taxable year ending within a fiscal year of the City and 
County of San Francisco immediately following a fiscal year for which the City and County has 
surplus business tax revenue. 

(Fiscal impact; Adds Section 906E.) 

10/26/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 1 1/25/1998. 

27. 981813 [Surplus Business Tax Revenue Credit| Supervisors Kaufman. 

Leno 

Ordinance amending Municipal Code Part III by adding Section 1005.9. creating a S500 business tax 
credit to taxpayers for any taxable year endmg within a fiscal year of the City and County of San 
Francisco immediately following a fiscal year for which the City and County has surplus business tax 
revenue. 

(Fiscal impact; Adds Section 1005.9.) 

10/26/98. ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 1 1 25 1 998 

28. 981844 (Union Square Business Improvement District! Supervisor Kaufman 

Resolution declaring the intention of the Board of Supervisors to establish a property and business 
improvement district to be known as the "Union Square Business Improvement District," to order the 
levy and collection of a multi-year assessment, and setting a time and place for a public hearing 
thereon (January 25. 1999 at 3:00 p.m. or as soon thereafter as the matter may be heard). 

1 1/2/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 12'2-'1998. 

29. 981845 [Business Improvement District Ballot Procedures] Supervisor Kaufman 

Resolution establishing ballot procedures governing ballots cast by property owners of property 
located within the boundaries of a proposed busmess improvement district to be known as the "Union 
Square Business Improvement District." 

1 1/2/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 12'2'1998. 

IMPORTANT INFORMATION 

NOTE Persons unable to attend the meeting may submit to the City, by the rime the proceeding 
begins, written comments regarding the agenda items above. These comments will be made a part of 
the official public record and shall be brought to the attention of the Board of Supervisors. Any 
written comments should be sent to Committee Clerk, Finance Committee. San Francisco Board of 
Supervisors. 401 Van Ness Avenue. Room 308. San Francisco. California 94102 by 5:00p.m. on the 
day prior to the hearing. Comments which cannot be delivered to the committee clerk by that rime 
may be taken directly to the hearing at the location above. 



Adjournment 



City and County of San Francisco 



Printed at 11:5- AM on 1 1/21/98 



Finance Committee 



Meeting Agenda 



Wednesday, December 02, 1998 



LEGISLATION UNDER THE 30-DAY RULE 

Rule 5.40 provides that when an ordinance or resolution is introduced which would CREATE OR 
REVISE MAJOR CITY POLICY, the committee to which the legislation is assigned shall not consider 
the legislation until at least thirty days after the date of introduction. The provisions of this rule shall 
not apply to the routine operations of the departments of the City or when a legal time limit controls 
the hearing timing. In general, the rule shall not apply to hearings to consider subject matter when 
no legislation has been presented, nor shall the rule apply to resolutions which simply URGE action 
to be taken. 



30. 981707 [Gift Certificates for Payment for Parking and City Garages] Supervisor Kaufman 

Ordinance amending Administrarive Code by amending Section 2A. 1 80 to grant authority to the 
Department of Parking and Traffic to sell gift certificates for payment for parking at city garages. 

(Amends Section 2A.180.) 

10/13/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 1 1/13/1998. 



31. 



981796 [ATM Surcharges] 



Supervisors Ammiano, 
Bierman, Medina, Yee 

Ordinance amending Police Code by adding Section 648.1 to prohibit a financial institution from 
imposing a surcharge on non-account holders who use ATMS of the financial institution that are 
located in San Francisco. 

(Adds Section 648.1.) 

10/26/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 1 1/25/1998. 



32. 981810 [New Jobs Tax Credit Expansion] Supervisors Kaufman, 

Katz, Leno 

Ordinance amending Municipal Code Part III, Sections 906B and 1005.6 to add two additional years 
of tax credits for new jobs created on or after January 1, 1998. 

(Amends Part III, Sections 906B and 1005.6.) 

10/26/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 1 1/25/1998. 



33. 



981812 [Surplus Business Tax Revenue Credit] 



Supervisors Kaufman. 
Leno 



Ordinance amending Municipal Code Part III by adding Section 906E, creating a S500 payroll 
expense tax credit to taxpayers for any taxable year ending within a fiscal year of the City and 
County of San Francisco immediately following a fiscal year for which the City and County has 
surplus business tax revenue. 

(Fiscal impact; Adds Section 906E.) 

10/26/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 1 1/25/1998. 



City and County of San Francisco 



Primed at 11:57 AM on 1 1/23/98 



Finance Committee 



Meeting Agenda 



Wednesday, December 02, 1998 



34. 981813 |Surplus Business Tax Revenue Credit] Supervisors Kaufman. 

Leno 

Ordinance amending Municipal Code Part III by adding Section 1005.9, creating a S500 business tax 
credit to taxpayers for any taxable year ending within a fiscal year of the City and County of San 
Francisco immediately following a fiscal year for which the City and County has surplus business tax 
revenue. 

(Fiscal impact; Adds Section 1005.9.) 

10/26/98, ASSIGNED UNDER 30 DAY RULE io Finance Committee, expires on 1 1/25/1998. 

35. 981848 (Assessment Appeals Board Membership) Supervisor Kaufman 

Ordinance amending Administrative Code Sections 2B1 through 2B.8 and 2B.10 through 2B.14 to 
increase the number of Assessment Appeals Board members, to establish eligibility requirements for 
Assessment Appeals Board members, to establish criteria for selection of Assessment Appeals Board 
panels and hearing officers, to establish guidelines for joint meetings of the Assessment Appeals 
Boards, and to make nonsubstantive clarifying revisions 

(Amends Sections 2B1 through 2B.8 and 2B.10 through 2B.14.) 

1 1/2/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 12/2/1998. 

36. 981927 [Union Square Business Improvement District Advisory Board) Supervisor Kaufman 

Resolution establishing an Advisory Board to make recommendations to the Board of Supervisors on 
the expenditure of revenues derived from assessments, on the classification of properties within, and 
on the method and basis for levying assessments upon, property located within the Union Square 
Business Improvement District 

1 1/16/98, ASSIGNED UNDER 30 DAY RULE to Finance Commmee. expires on 12 16/1998. 

37. 981936 [Penalties. Late Payment of Parking Tickets| Supervisor Teng 

Ordinance amending Traffic Code by adding Section 131 to Article 7, adopting a penalty schedule 
for the late payment of parking tickets and providing that the Board of Supervisors may by resolution 
declare periods of amnesty during which late payment penalties would be forgiven upon prompt 
payment of the underlying fine. 

(Adds Section 131.) 

1 1/16/98. ASSIGNED UNDER 30 DAY RULE to Finance Commmee, expires on 12 16/1998. 



Watch future agendas for matters. 



City and County of San Francisco 



Printed at 11 -.S' ,<M on 11/23/9$ 



Finance Committee 



Meeting Agenda 



Wednesday, December 02, 1998 



Disability Access 



Both the Committee Room (Room 4 1 0) and the Chamber (Room 404) are wheelchair accessible. The closest 

accessible BART Station is Civic Center, four blocks from the Veterans Building. Accessible MUNI lines serving this 

location are: #42 Downtown Loop, the #71 Haight/Noriega, the F line to Market and Van Ness and the METRO 

stations at Van Ness and Market and at Civic Center. For more information about MUNI accessible services, call 923- 

6142. 

There is accessible parking in the vicinity of the Veterans Building adjacent to Davies Hall and the War Memorial 

Complex. 

Assitive listening devices are available for use in the Meeting Room and the Board Chamber. A device can be 
borrowed prior to or during a meeting. Borrower identification is required and must be held by Room 308 staff. 

The following services are available on request 48 hours prior to the meeting or hearing: 

For American sign language interpreters or the use of a reader during a meeting, contact Violeta Mosuela at 
(415) 554-7704. 

For a large print copy of an agenda, contact Moe Vazquez at (415) 554-4909. 

In order to assist the City's efforts to accommodate persons with severe allergies, environmental illness, multiple 
chemical sensitivity or related disabilities, attendees at public meetings are reminded that other attendees may be 
sensitive to various chemical based products. Please help the City to accommodate these individuals. 

Government's duty is to serve the public, reaching its decisions in full view of the public. Commissions, boards, 
councils and other agencies of the City and County exist to conduct the people's business. The Sunshine Ordinance 
assures that deliberations are conducted before the people and that City operations are open to the people's review. For 
more information on your rights under the Sunshine Ordinance (Chapter 67 of the San Francisco Administrative Code) 
or to report a violation of the ordinance, contact the Sunshine Ordinance Task Force at 554-4851. 



City and County of San Francisco 



Printed at 1 1: 57 AM on 1 1/23/98 



FINANCE COMMITTEE 

S.F. BOARD OF SUPERVISORS 

VETERANS BUILDING 

401 VAN NESS AVENUE. ROOM 308 

SAN FRANCISCO. CA 94102 

IMPORTANT HEARING NOTICE!!! 



Bill Lynch 

( .n\ i Information Ctr 

41 Library 

100 Larkin Street 




City and County ofjSan Francisco 

Meeting Minutes — P/^ £?-jA 
^Finance Committee "^^--^ 

Members: Supervisors Mabel Teng, Barbara Kaufman, Gavin Newsom 
Clerk: Joni Blanchard 



Veterans Building 

401 Van Ness Avenue, 

Room 308 

San Francisco, CA 

94102-4532 



Wednesday, December 02, 1998 



1:00 PM 



Regular Meeting 



Veterans Building 

401 Van Ness Ave., Room 410 

San Francisco, CA 94102 



Members Present: Mabel Teng, Barbara Kaufman. 
Members Absent: Gavin Newsom. 



DO r -' 



- n«=°T. 



DEC 1 1998 






Meeting Convened 

The meeting convened at 1:08 P.M. 

CONSENT AGENDA 

All matters listed hereunder constitute a Consent Agenda, are considered to be routine and will be acted upon 
by a single roll call vote of the Committee. There will be no separate discussion of these items unless a 
member of the Committee so requests, in which event the matter shall be removed from the Consent Agenda 
and considered as a separate item. 

981651 [Reserved Funds, Public Transportation Commission) 

Hearing to consider release of reserved funds, Public Transportation Commission (Resolution No. 529-91, File 
94-91-4), in the amount of $296,000, to continue project implementation activities for the renovation of 
Presidio Division Operator Training Facilities. (Public Transportation Commission) 

10/5/98, RECEIVED AND ASSIGNED to Finance Committee. 

APPROVED AND FILED 

981652 [Reserved Funds, Public Transportation Commission! 

Hearing to consider release of reserved funds, Public Transportation Commission (Resolution No. 529-91, File 
94-91-4), in the amount of $400,000, to continue project implementation activities for the Potrero Facility 
Improvement Program/Roof and Drainage Renovation. (Public Transportation Commission) 

10/5/98, RECEIVED AND ASSIGNED to Finance Committee. 

APPROVED AND FDLED 

941684 [Reserved Funds, Fire Department! 

Hearing to consider release of reserved funds, Fire Department ( 1 986 Fire Protection Bond interest earnings, 
Ordinance No. 127-96) in the amount of $44,500, to fund a portion of AWSS Ashbury Water Storage Tank 
rehabilitation project. (Fire Department) 

10/5/98, RECEIVED AND ASSIGNED to Finance Committee. 

APPROVED AND FILED 

981886 [Reserved Funds, Recreation and Park Department! 

Hearing to consider release of reserved funds, Recreation and Park Department ( 1 992 Golden Gate Park 
Infrastructure Bond Fund proceeds, Ordinance 368-97), in the amount of $8,166,908, to fund the Bowling 
Green Drive Zone Projects in the Golden Gate Park. (Recreation and Parks Department) 

1 1/6/98, RECEIVED AND ASSIGNED to Finance Committee. 

APPROVED AND FILED 



City and County of San Francisco 



Primed at 10:36 AM on I2/7/V8 



Finance Committee 



Meeting Minutes 



December 2, 1 998 



The foregoing items were acted upon by the following vote: 
Ayes: 2 - Teng, Kaufman 
Absent: 1 - Newsom 

Severed from the Consent Agenda 

981843 (Prop J Contract, Victim Witness Services| 

Resolution concurring with the Controller's certification that assistance to certain victims of crime and 
education in community anti-street violence can be practically performed for the District Attorney's Victim 
Witness Assistance Program by a private contract for a lower cost than similar work services performed by 
City and County employees. (District Attorney) 

10/30/98, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee. Amended on page I, line 7 after "employees" to add "retroactively effective July I. 

1998" and on line 22 to insert "retroactively" before the word "effective 

AMENDED. 

Resolution concurring with the Controller's certification that assistance to certain victims of enme and 

education in community anti-street violence can be practically performed for the District Attorney's Victim 

Witness Assistance Program by a private contract for a lower cost than similar work services performed by 

City and County employees retroactively effective July 1, 1998. (District Attorney) 

RECOMMENDED AS AMENDED., by the following vote: 

Ayes: 2 - Teng, Kaufman 
Absent: 1 - Newsom 

REGULAR AGENDA 

981790 [Airport Concession Lease] 

Resolution approving Boarding Areas "B" and "C" Principal Concessions Retail Lease between Pacific 
Gateway Concessions, LLC and the City and County of San Francisco, acting by and through its Airport 
Commission. (Airport Commission) 

10/26/98, RECEIVED AND ASSIGNED to Finance Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst Jon Ballesteros, Airport Commission 
RECOMMENDED by the following vote: 

Ayes: 2 - Teng, Kaufman 
Absent: 1 - Newsom 

981791 [Airport Lease Agreement, Nippon Cargo Airlines| 

Resolution approving lease agreements for cargo warehouse space in the North Field Cargo Facility between 
Nippon Cargo Airlines Company, Inc. and the City and County of San Francisco, acting by and through its 
Airport Commission. (Airport Commission) 

10/26/98, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee Speakers: Harvey Rose, Budget Analyst, Jon Ballesteros. Airport Commission 
RECOMMENDED by the following vote: 

Ayes: 2 - Teng, Kaufman 
Absent: 1 - Newsom 



City and County of San Francisco 



Printed at 10:37 AM on 12/7/91 



Finance Committee 



Meeting Minutes 



December 2, 1998 



Ordinance appropriating $389,513, and rescinding $1 19,762, from Overhead-Budget and $137,045 from 
Professional Services to provide funds for salaries, fringe benefits, equipment, services of other departments 
and the creation of one (1) position for the Department of Juvenile Probation for fiscal year 1998-1999. 
(Controller) 

(Fiscal impact; companion measure to File 981882.) 

Speakers: Harvey Rose, Budget Analyst,; Sandy Brown, Juvenile Probation Dept. 
RECOMMENDED AS AMENDED by the following vote: 

Ayes: 2 - Teng, Kaufman 

Absent: 1 - Newsom 
981882 [Annual Salary Ordinance Amendment, Juvenile Probation) 

Ordinance amending Ordinance No. 243-98 (Annual Salary Ordinance, 1998-1999), Juvenile Probation 
Department, reflecting the creation of one position (Class 1372 Special Assistant XVIII). (Department of 
Human Resources) 

(Companion measure to File 981875.) 

1 1/4/98, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee. Amended on Page I, line II to change "1372N" to "1372L" and "XVIII" to "XIII". 

AMENDED. 

Ordinance amending Ordinance No. 243-98 (Annual Salary Ordinance, 1998-1999), Juvenile Probation 

Department, reflecting the creation of one position (Class 1372 Special Assistant XIII). (Department of Human 

Resources) 

(Companion measure to File 981875.) 

Speakers: Harvey Rose, Budget Analyst: Sandy Brown, Juvenile Probation Dept. 
RECOMMENDED AS AMENDED by the following vote: 

Ayes: 2 - Teng, Kaufman 

Absent: 1 - Newsom 

981926 [Citywide Emergency Radio System Financing] Mayor 

Resolution approving the issuance of lease revenue bonds of the City and County of San Francisco Finance 
Corporation; approving the execution and delivery of a first amendment to the site lease agreement between 
the City and County, as lessor, and the City and County of San Francisco Finance Corporation, as lessee, 
relating to certain police and fire facilities located in the City (as further described in this resolution); 
approving the execution and delivery of a first amendment to lease and option to purchase between the 
Corporation, as lessor, and the City, as lessee, relating to the property; approving the execution and delivery of 
a first supplemental indenture of trust among the corporation, the City and the Trustee; approving the 
execution and delivery of a continuing disclosure certificate relating to said bonds, ratifying previous actions 
taken in connection with the foregoing matters; adopting findings under the California Environmental Quality 
Act and findings pursuant to Planning Code Section 101.1; and authorizing the taking of appropriate actions in 
connection therewith. 

(Fiscal impact.) 

1 1/16/98, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Mike Martin. Emergency Radio Services. 
RECOMMENDED by the following vote: 

Ayes: 2 - Teng, Kaufman 

Absent: 1 - Newsom 



City and County of San Francisco 



Printed at 10: J7 AM on 12/7/98 



Finance Committee 



Meeting Minutes 



December 2, 1998 



981889 |Public Auction - Tax-defaulted Real Property! 

Resolution authorizing Tax Collector to sell at puhl.c auction certain parcels of tax-defaulted real property. 
(Treasurer-Tax Collector) 

1 1/9/98, RECEIVED AND ASSIGNED to Finance Committee. 

Heard in Committee. Speakers Harvey Rose. Budget Analyst, Willie Ross. Tax Collector's Office 
RECOMMENDED by the following vote: 
Ayes: 2 - Teng, Kaufman 
Absent: 1 - Newsom 
981810 |New Jobs Tax Credit Expansion! Supervisors Kaufman, Katz, Leno, 

Teng 
Ordinance amending Municipal Code Part III, Sections 906B and 1005.6 to add two additional years of tax 
credits for new jobs created on or after January 1, 1998. 

(Amends Part III, Sections 906B and 1005.6.) 

10/26/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 1 1/25/1998. 

Heard in Committee. Supervisor Teng added as co-sponsor Speakers Han e\ Rose. Budget Analyst. John 
Clark. Legislative Analyst; Richard Sullivan. Tax Collector Public Speakers Supporting Jim Chappell. 
Marvin Warren; Stephen Cornell; Riva. Online. Roberta Achtenberg Opposed Marc Norton 
RECOMMENDED by the following vote: 

Ayes: 2 - Teng, Kaufman 

Absent: 1 - Newsom 
|Surplus Business Tax Revenue Credit! Supervisors Kaufman. Leno 

Ordinance amending Municipal Code Part III by adding Section 906E, creating a $500 payroll expense tax 
credit to taxpayers for any taxable year ending within a fiscal year of the City and County of San Francisco 
immediately following a fiscal year for which the City and County has surplus business tax revenue 



981812 



981813 



(Fiscal impact; Adds Section 906E.) 

10/26/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 1 1/25/1998. 

Heard in Committee. Speakers: Han'ey Rose. Budget Analyst; John Clark. Legislative Analyst. Richard 
Sullivan, Tax Collector. Public Speakers. In Support Jim Chappell. Manin Warren. Stephen Cornell 
Opposed: Marc Norton. 
RECOMMENDED by the following vote: 

Ayes: 2 - Teng, Kaufman 

Absent: 1 - Newsom 
(Surplus Business Tax Revenue Credit| Supervisors Kaufman, Leno 

Ordinance amending Municipal Code Part III by adding Section 1005.9, creating a $500 business tax credit to 
taxpayers for any taxable year ending within a fiscal year of the City and County of San Francisco 
immediately following a fiscal year for which the City and County has surplus business tax revenue 

(Fiscal impact; Adds Section 1005.9.) 

10/26/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 1 1/25/1998. 

Heard in Committee Speakers Harvey Rose. Budget Analyst. John Clark. Legislative Analyst. Richard 
Sullivan, Tax Collector. Public Speakers: In Support Jim Chappell; Marvin Warren; Stephen Cornell 
Opposed: Marc Norton. 
RECOMMENDED by the following vote: 

Ayes: 2 - Teng, Kaufman 

Absent: 1 - Newsom 



City and County of San Francisco 



Printed at 10:3' AM on 12^/IS 



Public Library, Gov't Information Ctr.. 5 th Fir. 
Attn: Susan Horn, Dept. 41 



25 



n 



CITY AND COUNTY 




OF SAN FRANCISCO 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



November 25, 1998 
TO: 4 Finance Committee 

FROM: , Budget Analyst *«. — •* A«.V.o*r Jh<- ^e*;^ < 
SUBJECT: December 2, 1998 Finance Committee Meeting 
Item 1 - File 98-1651 



,4 



DOCUMENTS DEPT, 

DEC 1 1998 

san franc; SCO 
PUBLIC LIBRARY 



Department: 



Item: 



Amount: 
Source of Funds: 

Description: 



Public Utilities Commission (PUC) 

Department of Public Transportation (Municipal Railway) 

Release of reserved funds in the amount of $296,000 from 
previously authorized Federal Transit Administration 
grant funds, including matching funds from a 
combination of State, Regional and Local sources, for the 
Presidio Division Operator Training Facilities Expansion 
Project. 

$296,000 

Federal Transit Administration grant funds, including 
matching funds from a combination of State, Regional and 
Local sources. 

The Presidio Division Operator Training Facilities, 
located at 2640 Geary Street, are used by the Municipal 
Railway (MUNI) for (a) administrative offices and (b) for 
classrooms to train transit operators of all types of MUNI 
vehicles. According to Mr. Jerry Levine of MUNI, MUNI 
recently acquired approximately 19,500 square feet of 
additional office space within the City-owned Presidio 
Division Operator Training Facilities building, when the 



Memo to Finance Committee 

December 2. 1998 Finance Committee Meeting 

Purchaser's Warehouse was moved from such office space 
to Pier 29. l Mr. Levine states that MUNI plans to use 
this additional office space to expand its transit operator 
training facilities and that such expansion will require 
the installation of carpet, tiling, drapes, blinds, a heating 
ventilation and air conditioning system, furnishings, 
additional telephone lines, two new doorways and a chain 
link fence around the construction area. 

In June of 1991, the Board of Supervisors authorized the 
Public Utilities Commission (PUC) 2 to apply for, accept 
and expend grant funds in the amount of $13,815,120 
from the Federal Transit Administration (FTA) 3 and 
matching funds from a combination of State, Regional and 
Local sources in the amount of $3,453,780, for a total of 
$17,268,900, to fund eight MUNI projects (File No. 94-91- 
4), including the Presidio Division Operator Training 
Facilities Expansion Project. 

Of the total funds of $17,268,900, $13,982,500 was placed 
on reserve pending the submission of cost details to the 
Finance Committee of the Board of Supervisors. 

The Finance Committee subsequently authorized the 
release of funds in the amount of $13,235,142 from the 
reserved balance of $13,982,500 for various projects, 
leaving a current balance of $747,358 on reserve. This 
request would authorize the release of $296,000 for the 
Presidio Division Operator Training Facilities Expansion 
Project. Item 4, File No. 98-1652, in this report to the 
Finance Committee would authorize the release of 
$400,000 for the Potrero Facility Improvement 
Program/Roof and Drainage Renovation Project, leaving a 
balance of $51,358 on reserve. 

Budget: The Attachment, provided by Mr. Levine, contains the 

budget details for the total project cost of $296,000 for the 



1 According to the Purchasing Department, in 1990, MUNI loaned the subject office space to the 

Purchaser at no cost. 

; In 1994, the M way was moved from under the jurisdiction of the Public Utilities 

Commission to that of the Department of Public Transportation. 

3 At the time of this grant award, the Federal Transit Administration was known as the Urban Mass 

Transit Administration. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

December 2, 1998 1 man^c Committee Meeting 



Comments: 



Recommendation: 



Presidio Division Operator Training Facilities Expansion 
Project. 

1. Work related to the Presidio Division Operator 
Training Facilities Expansion Project began in August of 
1998 and is anticipated to be completed in November of 
1998, according to Mr. Levine. 

2. The Attachment, provided by Mr. Levine, incorrectly 
identifies the location of the Presidio Division Operator 
Training Facilities at 2650 Geary Street. The actual 
location of such faculties is at 2640 Geary Street. 

Approve the release of reserved funds. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Attachment 



20 "d "IblOl 

MM 



Engineering • Construction • Phone:(415)554-1869 



Public Transportation Department • 1 145 Market Su, 6th Fl. • San Francisco. CA 94103 • Fax:(415)554-1837 




Date: October 15, 1998 

Subject: Presidio Training Facilities Expansion Project 

Project Summary 

Purpose: To expand and improve existing operator training facilities to meet projected 

training goals. 

Scope: The newly acquired office spaces at 2650 Geary (formerly the Purchaser's 

Warehouse) needs tenant improvement work (i.e. new paint, carpet, tiling, 
drapes/blinds, lighting, HVAC, furnishings, hazardous material remediation) 
before they could be used as classrooms, office space, conference rooms, lunch 
room, and restrooms. Work includes installation of chain link fencing in the 
adjacent garage space, to allow existing storage rooms at 2640 Geary to be 
converted into office space. New phone lines need to be installed in all of the 
new office facilities. Finally, a doorway between the offices of 2640 and 2650 
Geary, and a new doorway will be installed in the roll-up garage door at 2650 
Geary. 

Available Funds: FINANCIAL PLAN 5296,000 Federal FTA (incl. a combination of 
state, regional & local match sources) 

Total funds required from reserve = $296,000 



Current 

Cost 

Breakdown: 



Project Management = 

Engineering Services = 

DPW BOA = 

DTIS = 

Ways and Structures = 

DPW BBR = 

Muni Health and Safety 

HVAC Procurement = 

Furnishings = 

Grand Total = 



$11,000 

$16,000 

$35,000 

$21,000 (New phone lines) 

$74,000 (all tenant improvement except HVAC) 

$43,000 (HVAC work and doorway in garage roll-up) 

$7,000 (Hazardous material remediation) 

$12,000 (Unit procurement for HVAC system) 

$77.000 (Fumiture and equipment for new facilities) 

$296,000 



S0/S0 • d 0292C26STF 



1NTU dS 



ZZ:Z1 866T-ST-1D0 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Item 2 -File 98-1652 



Department: 



Item: 



Amount: 
Source of Funds: 



PrMir- Utilities Comnrss ; ?UC) 

Department of Public Transportation (Municipal Railway) 

Release of reserved funds in tbe amount of $400,000 from 
previously authorized Federal Transit Administration 
grant funds, including matching funds from a 
combination of State, Regional and Local sources, for the 
Potrero Facility Improvement Program/Roof and 
Drainage Renovation Project. 

$400,000 

Federal Transit Administration grant funds, including 
matching funds from a combination of State, Regional and 
Local sources. 



Description: 



According to Mr. Jerry Levine of the Municipal Railway 
(MUNI), the Potrero Maintenance Facility, located at 
2500 Mariposa Street, contains MUNI's vehicle 
maintenance building and tire and body shops. The 
Potrero Maintenance Facility is also used by MUNI to 
park a total of 180 MUNI vehicles during non-operating 
hours. Mr. Levine reports that the renovation work to be 
performed on the Potrero Facility consists of replacing the 
roofing system and skylights, upgrading the existing 
heating ventilation/air conditioning system, repairing 
areas of the parking deck and installing a new site 
drainage system. 

In June of 1991, the Board of Supervisors authorized the 
Public Utilities Commission (PUC) 1 to apply for, accept 
and expend grant funds in the amount of $13,815,120 
from the Federal Transit Administration (FTA) 2 and 
matching funds in the amount of $3,453,780 from a 
combination of State, Regional and Local sources, for a 
total of $17,268,900, to fund eight MUNI projects (File 
No. 94-91-4), including the Potrero Facility Improvement 
Program/Roof and Drainage Renovation Project. 



: . diction oi the i'uuuc Utilities 

Commission to that of the Department of Public Transportation. 

2 At the time of this grant award, the Federal Transit Administration was known as the Urban Mass 
Transit Administration. 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Budget: 



Of the total funds of $17,268,900, $13,982,500 was placed 
on reserve pending the submission of cost details to the 
Finance Committee of the Board of Supervisors. 

The Finance Committee subsequently authorized the 
release of funds in the amount of $13,235,142 from the 
reserved balance of $13,982,500 for various projects, 
leaving a current balance of $747,358 on reserve. This 
request would authorize the release of $400,000 for the 
Potrero Facility Improvement Program/Roof and 
Drainage Renovation Project. Item 3, File No. 98-1651, in 
this report to the Finance Committee would authorize the 
release of $296,000 for the Presidio Division Operator 
Training Facilities Renovation Project, leaving a balance 
of $51,358 on reserve. 

The Attachment, provided by Mr. Levine, provides the 
budget details for the total project cost of $1,895,000 for 
the Potrero Facility Improvement Program/Roof and 
Drainage Renovation Project. Mr. Levine advises that the 
construction contract, which is estimated to cost 
$1,400,000 of the total project cost of $1,895,000, is being 
competitively bid and will be awarded in December of 
1998. 



Comments: 



1. As noted above, the total project cost of the Potrero 
Facility Improvement Program/Roof and Drainage 
Renovation Project is $1,895,000 or $1,495,000 more than 
the subject request of $400,000 on reserve. According to 
Mr. Levine, the source of the additional $1,495,000 would 
be from Local One Half Cent Sales Tax revenues 
previously allocated by the Transportation Authority 
Commission. 



Recommendation: 



2. Work related to the Potrero Facility Improvement 
Program/Roof and Drainage Renovation Project began in 
August of 1998 and is anticipated to be completed in 
August 1999, according to Mr. Levine. 

■\pnrnvp the mlpasp of reserved funds. 



ALi.cicn.inem: 



20 "d "TtU.01 



Potrero Facility Improvements - Roof of Drainage Project 

PROJECT/PROGRAM DESCRIPTION: The Potrero Division has two major facility 
deficiencies. The roof and drainage needs to be rehabilitated and the paint booths need to 
be modified to accommodate articulated coaches on the upper deck. The project involves 
only the Reroofing and Drainage Improvements needs. Paint booth modifications will be 
implemented separately. 

This Project will resolve existing roofing deterioration and rain infiltration in the offices 
and shops. Project activities include removal and replacement of all of the Potrero roofing 
system and skylights, upgrading the existing heating ventilation air conditioning system, 
repairing isolated areas of the parking deck membrane, and installing a new drainage 
system to remove standing water in the crawl space below the parking deck. 

The work to be performed will alleviate overflowing floor drains (during severe storms) 
and repair the numerous rain water leaks present throughout the Potrero Trolley Coach 
Facility. The major components of the project include replacing the roof system, 
improving the site drainage system, and installing a waterproof membrane for the parking 
area. 

The project is to be completed in two (2) phases. The first phase will address all of the 
plumbing work beneath the parking deck within 80 calendar days after the Notice to 
Proceed date. The second phase will complete all of the rain-sensitive roof and parking 
deck membrane work within 120 calendar days after April 15, 1999 (the official end of 
the rainy season). 

This $400,000 to be released from reserves will be used to fund a portion of the 
construction contract, estimated at $1,600,000 (including contingency). 

The Potrero Facility Drainage Improvements Project, is a part of the Fixed Facilities 
Improvements Program as identified in the MUNI's Capital Improvement Program (CIP). 

PROJECT BUDGET 

Category Budget 

Engineering, Inspection, and Management $295,000 

Construction Contract $ 1 ,400,000 

Contingency $200,000 



Total $1,895,000 

FINANCIAL PLAN 

topB) $1,495,000 79% 

Federal (incl a combination of state, $ 400,000 21% 

regional & local sources) 



20/20-d 029S£S6STf 7 INDW dS 81 :9T 8661-^1-130 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Item 3 -File 98- 1 684 
Department: 

Item: 

Amount: 
Source of Funds: 

Description: 



Fire Department (SFFD) 
benariment of Public Works ^DPW) 

Hearing to consider the release of $44,500 held on reserve 
to fund the construction cost overruns associated with the 
repair work on the Auxiliary Water Supply System 
(AWSS) Ashbury Water Storage Tank Project. 

$44,500 

Previously reserved interest accrued on 1986 General 
Obligation Fire Protection Systems Improvement Bonds 

In November of 1986, San Francisco voters approved 
Proposition A for the issuance of $46.2 million in Fire 
Protection Systems Improvement General Obligation 
Bonds. These bonds were to finance the City's Auxiliary 
Water Supply System (AWSS). The AWSS is a system of 
reservoirs, cisterns, pipelines, pump stations and 
fireboats, used as a water supply source for fire protection 
in emergency situations. 

In 1987, the City sold $31 million of Fire Protection 
Systems Improvement Bonds and the remaining $15.2 
million in 1991 for a total of $46.2 million. In March of 
1996, the Board of Supervisors approved a Supplemental 
Appropriation of $3,907,900 from accrued interest earned 
on the Fire Protection Systems Improvement Bonds for 
four types of capital improvements: (1) repair and 
improvement of the Fireboat Phoenix, (2) installation of 
motorized AWSS Control Valves, (3) repairs to AWSS 
Water Storage Tanks, and (4) emergency repairs of AWSS 
facilities. 

The Board of Supervisors placed $3,269,850 of the 
$3,907,900 on reserve, pending submission of contract 
cost details. A total of $906,216 has been previously 
released, resulting in a remaining balance on reserve of 
$2,363,634. This request would authorize the release of 
$44,500 in previously reserved funds to fund tbo 
iv< rrui assi i d w ith AW SS 
Ashbury Water Storage Tank Project. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



According to Mr. Patrick Rivera of the Department of 
Public Works (DPW), in March of 1998, the DPW awarded 
a construction contract, in the amount of $75,000, to 
TRINET Construction, Inc., the lowest bidder, for the 
replacement of the protective interior lining of the AWSS 
Ashbury Water Storage Tank (the "Tank"), located at 
1234 Clayton Street. According to Mr. Rivera, DPW 
engineers incorrectly recorded the diameter of the Tank at 
28 feet which served as the basis for the bid amount of 
$75,000 submitted by TRINET Construction, Inc. During 
construction, TRINET Construction, Inc. discovered that 
the actual diameter of the Tank is 56 feet and that 
therefore the actual square footage of work performed by 
TRINET Construction, Inc. on the Tank increased by 
5,975 square feet from 3,345 to 9,320 square feet. This 
resulted in a cost increase of $97,467 from the original 
contract amount of $75,000 to $172,467. 



Budget: 



Approval of this request for release of $44,500 from 1986 
Fire Protection Bond Interest Earnings for the repair 
work on the AWSS Ashbury Water Storage Tank would 
still require an additional $52,967 (total unanticipated 
construction cost overruns of $97,467 less the requested 
release of $44,500 on reserve). According to Mr. Rivera, 
the funding source of the additional $52,967 would be 
surplus monies from previously released 1986 Fire 
Protection Bond Interest Earnings from various projects 
that were completed at less than their estimated 
construction contract amounts. 



The Attachment, provided by Mr. Rivera, contains the 
budget details for the construction cost overruns in the 
amount of $97,467. 



Recommendation: 



Approve the release of reserved funds. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Oct-09-98 05:04pm From-DPW/BOE 



415-558-4519 



T-113 P. 01/01 F-327 

ATTACHMENT 



AWSS Water Storage Tank, Ashbury Tank located at \7£H CSjA^ODO Sf. 
Breakdown of Adr"tional Costs 
Prepared jy: Patrick Rivera, 558-4045 
10/9/98 



Increase quantity of Bid Item No. 1 : Apply new coating as interior lining 
to the existing steel wsui and bottom of the tank and all appurtenant work 
required under the contract documents, from 3345 sf to 9,320 sf, 5,975 sf 
at $8.97 per sf 


$53,595.75 


Perform additional surface preparation of the construction area not 
indicated on the drawings and disposal of removed material in a legal 
manner in accordance with the requirements of the contract documents, 
5,975 sfat $8.37 per sf 


$50,010.75 


Provide additional horizontal top rail to existing ladder and reconstruct 
existing framing around the hatch opening. 


$6,500.00 


Delete mobilization cost and reduce contract mark-up from 15% to 10% 


($12,641.00) 


TOTAL 


$97,465.50 



Post-It* Fax Note 

CoVDepL 




10 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Item 4 - File 98-1886 






Department: 

Item: 

Amount: 
Source of Funds: 

Description: 



R creation and Park Department (RPD) 
Department of Public Works (DPW) 
Department of Parking and Traffic (DPT) 

Release of reserved funds in the amount of $8,166,908 for 
the purpose of funding infrastructure improvements in 
the Bowling Green Zone of Golden Gate Park. 

$8,166,908 

1992 Golden Gate Park Infrastructure General Obligation 
Bond Fund proceeds 

In September of 1997, the Board of Supervisors approved 
an ordinance (File No. 101-97-13) appropriating 
$25,105,000 of the 1992 Golden Gate Infrastructure 
General Obligation Bond Fund proceeds for various 
capital improvement projects at Golden Gate Park. Of 
the total funds of $25,105,000, the Board of Supervisors 
placed $16,698,000 on reserve, pending DPWs 
submission of contract cost details. 

This request would authorize the release of $8,166,908 
from the reserved balance of $16,698,000 to fund 
infrastructure improvements in the Bowling Green Drive 
Zone at Golden Gate Park, leaving a balance of 
$8,531,092. According to Ms. Deborah Learner of the 
Recreation and Park Department, the Bowling Green 
Zone is the eastern portion of Golden Gate Park, between 
Bowling Green Drive and John F. Kennedy Drive from 
Kezar Avenue to 6 th Avenue, including the Sharon 
Meadows area, the Conservatory of Flowers, the Golden 
Gate Park Maintenance Yard and Tennis Clubhouse. 

Ms. Learner states that the construction work to be 
performed for the infrastructure improvements in the 
Bowling Green Drive Zone includes (1) the replacement of 
the existing manual irrigation system in the Sharon 
Meadows area with a new automatic irrigation system, (2) 
the installation of a new sewer line to pick up sanitary 
I. . ; from i lie various facilities in the Bowling Green 
Zone and route them to an existing sewer at Sixth Street 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

11 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Budget: 



and Fulton Avenue, (3) the installation of a new drainage 
system to pick up storm runoff from the roadways along 
John F. Kennedy Drive, (4) the installation of new 
lighting fixtures along various roadways in the Bowling 
Green Zone, (5) electrical service upgrades to the Golden 
Gate Park Maintenance Yard and Tennis Clubhouse, and 
(6) pathway and various Americans with Disabilities Act 
improvements in the Bowling Green Zone. Attachment I, 
provided by Ms. Shannon Maloney of the Department of 
Public Works, describes in further detail each of the 
above-noted infrastructure improvement projects. 

The construction contract for all of the infrastructure 
improvements in the Bowling Green Drive Zone totals 
$6,751,280 and was awarded to Flores/Interstate, a joint 
venture, which submitted the lowest bid pursuant to a 
DPW Invitation for Bids process. Attachment II, provided 
by Ms. Maloney, contains the budget details supporting 
the infrastructure improvements as provided by 
Flores/Interstate. 



Attachment III, provided by Ms. Learner, contains a list 
of the firms that submitted bids and the amounts of each 
bid. 

A summary budget for the proposed release of reserved 
1992 Golden Gate Park Infrastructure General Obligation 
Bond Fund proceeds in the amount of $8,166,908 is as 
follows: 

Construction Contract $6,751,280 

(Awarded to Flores/Interstate) 
Construction Contingency (10%) 675,128 

Department of Public Works 

Construction Management 700,000 

Department of Parking and Traffic 

Construction Supervision 40.500 



TOTAL 



$8,166,908 



Comments: 



1. Attachment TV, provided by Ms. Maloney, contains the 
budget details to support the in-house civil service costs to 
City for DPW Construction Management for this 
project. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



12 



Memo to Finance Committee 

jjecem^ci 2, xj98 i inance Committee Meeting 



2. Attachment V, also provided by Ms. Maloney, is a 
memorandum from the DPT to DPW estimating the in- 
house civil service costs to the City for DPT Construction 
Supervision for this project. 

Recommendation: Approve the proposed release of reserved funds. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

13 



J77K 



r^«.4^.^. ! 3^^S'.^-^h^i L Xle5r3fi t 45 



Attachment I 
Page 1 of 4 



SECTION 01010 
SUMMARY OF WORK 

GENERAL 

WORK COVERED BY CONTRACT DOCUMENTS 

h. The Work site is located in the general vicinity of Bowling Green Drive, a portion 
of Golden Gate Park, San Francisco, California, designated on the Drawings as 
Contract Areas 37 &. 45. The Work comprises sewer work, water delivery pipeline 
work, electrical distribution, irrigation, site lighting, landscaping improvements 
and modifications for ADA-AG compliance, and all appurtenant work indicated in 
the Contract Documents. In addition, the Work shall include site preparation, 
trenching, asphalt concrete paving and pathway renovation, concrete curb ramps, 
underground electrical conduits, and drainage facilities constructed within Contract 
Area 37 & 45 to the line and grade and general layout indicated on the Drawings. 

B. The Work shall be constructed under a single Lump Sum contract. 

C. Contractor shall be responsible for obtaining and paying for all electrical and 
plumbing permits required to complete the Work. 

D. Additive Alternates are described in Section 01030. 
SEWER WORK 

A Install new sewer line to pick up sanitary flows from the Maintenance Yard, Sharon 
Building, Bowling Green Clubhouse, Tennis Court Clubhouse, Conservatory of 
Flowers, and public restrooms, and route them to the existing sewer at Sixth Avenue 
and Fulton Street. Pick up storm runoff from the Tennis Court* in this new sewer 
line. 

■■ Install new drainage systems to pick up storm runoff from the roadways along John F. 
Kennedy Drive. 

LOCATION OF EXISTING UNDERGROUND UTILITIES WORK 

A- Provide the services of an underground utility locating firm to locate existing 

underground utilities that lie in the path of the pipeline and conduit trenching work 
to be performed under this Contract. Provide "as-located" Record Drawings of all 
such utility lines. 



01010 



Summary Of Work 



14 



NOV 20 '98 07:38AM CCSF, DPW, BOE, PROJECT MANAGEMENT P. 3 

1077N Bowling Green Drive Utilities -Contract Areas 37 & 45 . ,_ 

Attachment I 

Page 2 of 4 

1.4 IRRIGATION WORK 

A. Remove irrigation systems from existing domestic water lines. 

B. Install City-fumished equipment and automatic irrigation systems in Area 37 
45, provide location and installation of the controllers. * - I "• .. T 

C. Locate and install booster pumps as needed to provide adequate pressure fer a. 
automatic irrigation systems. 3u reton|* 

°" wte cm i0n SyStem ™ *' Shar ° n Meadows "™" t0 accommodate R^^ 

1 -5 WATER DELIVERY PIPELINE WORK 

* ^,-ri W Ji"!!! C T !!J edai ^ ed Wtte I. pipelin ^ in John F ' K «nnedy Drive, loopi^ 



C. 



parallel to Kezar Drive and across Sharon Meadows to Martin Luther King Jr 
Drive, and in Martin Luther King Jr. Drive. 

Install 8-inch reclaimed water pipelines in Conservatory Drive and Bowling Grw 

Install 8-inch domestic water pipelines in Arguello Boulevard and Conservatory 
Drive East with fire hydrant connections and a new water service for the 
Conservatory of Flowers with connection to the existing water main in Fulton 
street. 

D. Install 8-inch domestic water pipeline in Bowling Green Drive with fire hydrant 
connections and new water services for the Tennis Court and Bowling Green 
clubhouses with connection to the existing water main in Martin Luther King Jr, 
Drive. 

E. Provide connection points to the irrigation systems located throughout the 
Bowling Green Drive project area, including undercrossing Kezar Drive and 
Stanyan Street. 

F. Install 2-inch master control conduit and 2-inch irrigation control conduit in the 
reclaimed water pipeline trenches with pull/splice boxes located to the side off of 
the roadway. 

1-6 ELECTRICAL WORK 



Summary Of Work OlOlO - 2 

* (X/06/91 



IV] 



:& 




%n* 



Bowling Green Drive Utilities - Contract Areas 37 & 45 



Attachment I 
Page J ot i 



Area 37 



QJ 



•'"sure for tht 
te Reclaims 



ive, loopinj 
r King Jr. 



3 wling Gtw 



nservatory 
the 
n Fulton 



e hydrant 
j Green 

srKingJf- 



: the 
;eand 



uit in the 
side off* 



)1 



91 



i 



A. Install roadside lighting fixtures along Bowling Green Drive, JFK, Conservatory 
Drive, Axguello, 6th, 8th and 1 Oth Avenue; supply new conduit, wiring, 
weatherproof power panels with integral transformer and power to light fixtures 

B. Provide communication conduit for the automatic irrigation system. 

C. Provide new 1200A, 277/408 V, 3 phase, 4 wire electrical service to Maintenance 
Yard from existing underground PG & E splice box complete with 12KV 
underground distribution, new main weatherproof switchboard and new 
weatherproof step-down transformer. 

D.' Provide one new 400A connector unit for future portable engine generator 

connection located outside next to existing main switchboard building in Park 
Maintenance Yard off Martin Luther King Jr. Drive. 

E. Provide a new 400A service stub-out to the Tennis Clubhouse. 

F. Refer to Section 16420 for equipment furnished and installed by P.G. &. E 
LANDSCAPE ARCHITECTURE WORK 

A Provide ADA accessible AC path along north side of JFK Drive from Rose 
Gardens to Stanyan Street. 

B. Provide new AC. path along Middle Drive East from Steinhart Aquarium to 
Bowling Green Drive. 

C. Provide new AC. path and curb along Bowling Green Drive from Aids Memorial 
Grove to bowling greens. 

D. Provide 12' wide multi-use A.C. path along south side of JFK Drive from Rose 
Gardens to Kezar Drive. Install dry stack stone retaining walls along path in 
required locations. 

E. Provide ADA accessibility to Tennis Clubhouse, Bowling Green Clubhouse, 
Restrooms near Sharon Building and Carousel area, 

F. Re-grade, install dry stack stone walls, provide a new AX. path with handrails and 
restore landscape areas between Carousel area and restrooms near Sharon 
Building. 

G. Provide handicap ramps and curbing at all road intersections along all new paths, 
including intersections on north entrances to park along Fulton Street. 



01010 - 3 



Summary Of Work 



16 



NOV 20 '98 07:39AM CCSF,DPW,BOE, PROJECT MflNRbtrtm 

1077N Bowling Green Drive Utilities - Contract Areas 37 & 45 Attachment I 

Page A of 4 



H. Install and re-align crosswalks. 

I. Add blue zones along JFK Drive. 

J. Provide designated ADA accessible parking spaces for Tennis Clubhouse and 

Bowling Green Clubhouse. 

K. Re-align curb and traffic striping at Bowling Green / Middle Drive East 
intersection. 

L. Provide ADA access to picnic area near Sharon Building restrooms. 

M. Remove and re-install all benches along paths on new AC. pads. 

N. Restore landscape areas affected by utility and irrigation trenching operations. ' 
Items include paving, fencing, concrete and stone walls, irrigation, planting and 
lawn zones. 

0. Remove existing drinking fountains and install new ones. 

1 . 8 CITY-FURNISHED MATERIALS 

A. The Contractor is alerted that the City intends to furnish various materials to be 
included in the work of this Contract including: 

1. "Refer to Section 02810 for City-furnished irrigation equipment. 

2. Double thickness cemenMined ductile iron pipe and "Field-Lok" gasteu 
for main pipelines. 

3. Ductile iron push-on fittings for main pipelines. 

4. AWWA CS09 gate valves for main water supply. 

5. Acorn type luminaires. 

6. High intensity discharge ballasts. 

7. High pressure sodium lamps. 

8. Light poles. 



-"> 



»« 



1.10 C( 
A. 



Summary Of Work 



01010-4 



0*/06/M 



SCHEDULE OF BID PRICES (REV. 3) 
ADDENDUM NO. 3 
(PAGE 1 OF 7) 
BOWLING GREEN DRIVE UTILITIES 
CONTRACT AREA 37 & 45 
SPECIFICATION NO. 1077N 
JULY 8, 1998 
For constructing BOWLING GREEN DRIVE - CONTRACT 
AREA 37 & 45 in strict accordance with the Contract 
Documents for Specification Number 1077N. 



Attachment II 
Page 1 of 6 



Bidders must bid on all Bid Items and Alternates under 
consideration for selection by the City. 

Entries must be in black ink or typed. 



Bidder's Firm Name 

Street Address 

City Zip Code 

(Area Code) Telephone No. 

The undersigned, having examined the Site, all reference documents, and drawings; become familiar with 

the 

terms and conditions of the Contract Documents and with the local conditions affecting performance and 

costs of Work; and having fully inspected the Site in all particulars, hereby proposes and agrees to fully 

perform the Work as indicated on the Drawings and in accordance with the requirements of the 

Specifications within the time stated herein, and for the following Sum of money. 

Note: L.S. = Lump Sum, L.F. = Linear Feet. C.F. = Cubic Feet, S.F. = Square Feet, C.Y.= Bank Cubic Yards 



Bid 
Item 


Bid Item Description 


Estimated 
Quantity 


Unit 


Unit 
Price 


Extension 


1 


MOBILIZATION (Refer to Specification 
Section 01505.) Max. 5% of the total sum of 
Bid Items 1 through 40, excluding Allowances. 
Alternates and the Mobilization Bid Item itself. 


-- 


L.S. 


-- 


9-10,06* y 


2 


TRENCH SHORING AND BRACING OR 
EQUIVALENT METHOD CONFORMING 
TO APPLICABLE SAFETY ORDERS FOR 
SEWER AND DRAINAGE WORK ONLY 


-- 


L.S. 


•• 1 

10,600 


3 


TRENCH SHORING AND BRACING OR 
EQUIVALENT METHOD CONFORMING 
TO a ppt T- v pt r SAFETY ORDERS FOR 

jATION, ^LCTRICAL AND WATER 
DELIVERY SYSTEM WORK 




L.S. 


— 


1 0, 000 



07/13/98 



00310- 1 



Schedule of Bid Prices 



18 



SCHEDULE OF BID PRICES (REV. 3) 

ADDENDUM NO. 3 

(PAGE 2 OF 7) 

JOWLNG GREEN DRIVE UTILITES 

CONTRACT AREA 37 & 45 

SPEC!F1CAT!0I\. NO. 1077N 

JUL V 3, 1998 



Attachment II 
Paee n of b 



Bid 
Item 


Bi i ije^oiipuon 


Estimated 
Quantity 


Unit 


Unit 
Price 


Extension 


4 


ALLOWANCE FOR HANDLING, 
REMOVAL AND DISPOSAL OF EXISTING 
TRANSITE SEWER PIPES (Refer to Section 

01020.) 


- 


Allowance 


- 


50,000 


5 


ALLOWANCE FOR HANDLING, 
REMOVAL AND DISPOSAL OF 
HAZARDOUS MATERIALS (Refer to Section 

01020.) 


— 


Allowance 


- 


20,000 


6 


ALLOWANCE FOR SUPPLIES AND 
FURNISHINGS FOR RESIDENT 
ENGINEER'S HELD OFFICE (Refer to 
Section 01020.) 


— 


Allowance 


— 


50.000 


7 


ALLOWANCE FOR REMOVING AND 
RELOCATING UNFORESEEN EXISTING 
UTILITY FACILITIES (Keia to Section 
01020.) 


— 


Allowance 


— 


50,000 


8 


ALLOWANCE FOR ALL FEES 
ASSOCIATED WITH CONTRACTOR- 
OBTAINED DEFT. OF BUILDING 
INSPECTION PERMITS (Refer to Section 
01020.) 




Allowance 




20,000 


9 


ALLOWANCE FOR ADDITIONAL 
IRRIGATION WORK (AS DIRECTED BY 

THE ENGINEER) 


~ 


Allowance 


- 


25,000 


10 


FURNISH & INSTALL 6 INCH VITRIFIED 
CLAY PIPE (VCP) 


525 


L.F. 


$& 


-3£/i03 


11 


FURNISH & INSTALL 10 INCH VITRIFIED 
CLAY PIPE (VCP; C ERTS 


S90 


L.F. 

l 


| <ol-^ 


'% t>% 


h 

chedu 


e of Bid Prices 00310-2 

19 








07/13/98 



SCHEDULE OF BID PRICES (REV. 3) 

ADDENDUM NO. 3 

(PAGE 3 OF 7) 

BOWLING GREEN DRIVE UTILITIES 

CONTRACT AREA 37 & 45 

SPECIFICATION NO. 1077N 

JULY 8, 1998 



Attachment II 
Page 3 ot 6 



Bid 

Item 


1 - Bid Item Description 


Estimated 
Quantity 


Unit 


Unit 
Price 


Extension 




12 


FURNISH & INSTALL 12 INCH VITRIFIED 
CLAY PIPE (VCP) 


2,960 


LF. 


twlzttta 




13 


FURNISH & INSTALL 24 INCH VITRIFIED 
CLAY PIPE (VCP) 


2,375 


L.F. 


17 at 


Sf0it7ii 


14 


FURNISH & INSTALL 12 INCH 
DIAMETER DUCTILE IRON PIPE (DIP) 
(CLASS 50) - DRAINAGE WORK 


280 


LF. 


£f. cv 


/$?c\>. 


15 


FURNISH & INSTALL 12 INCH 
DIAMETER HIGH DENSITY 
POLYETHYLENE (HDPE) PIPE - 
DRAINAGE WORK 


171 


LF. 


%£r 


</,»$ 


16 


FURNISH & INSTALL 24 INCH DIAMETER 
REINFORCED CONCRETE PIPE (RCP) 


176 


LF. 


/fa* 


%>, fy 


0. 


17 


FURNISH & INSTALL MANHOLES AND 
CATCH BASINS 


-- 


L.S. 


•• 


/SS,c>oc 




18 


CONSTRUCT DEEP SHAFT MANHOLE 


_ 


L.S. 


$J,0C6 


/ 


19 


CONSTRUCT FRENCH DRAINS 


_ 


L.S. 





2^,£<x 


> 


20 


RESTORATION OF PAVED AND 
PLANTED SURFACES FOR SEWER & 
DRAINAGE WORK ONLY 


- 


L.S. 


- 


^ 661 


) 


21 


6 OR 8-INCH SIDE SEWER TELEVISION 
INSPECTIONS & CONNECTIONS 


- 


L.S. 


- 


Jjioa 




22 


PLUG, ABANDON AND FILL EXISTING 
SEWERS, MANHOLE 

| BASINS 




L.S 


. 


1 

\S, 006. 


1 



07/13/98 



003 10 - 3 
20 



Schedule of Bid Prices 



SCHEDULE OF BID PRICES (REV. 3) 

ADDENDUM NO. 3 

(PAGE 4 OF 7) 

BOWLING GREEN DRIVE UTILITES 

CONTRACT AREA 37 & 45 

SPECIFICATION NO. 1077N 

JULY 8, 1998 



Attachment II 
Page 4 of 6 



Bid 

Item 



Bid Item Description 



'S^ f OR SEWER. DRAINAGE. 
IRRIGATION, WATER DELIVERY 

SYSTEMS AND ELECTRICAL WORK (Refer 

i^E££i!i££li£lLS££nons_02n^022 1 1 .) 



^-f^CEL^^ 




^m 



ledule of Bid Prices 



00310-4 



21 



07/13/98 



SCHEDULE OF BID PRICES (REV. 3) 

ADDENDUM NO. 3 

(PAGE 5 OF 7) 

BOWLING GREEN DRIVE UTILITIES 

CONTRACT AREA 37 & 45 

SPECIFICATION NO. 1077N 

JULY 8, 1998 



Attachment II 
Fage 5 of 6 



Bid 

Item 



Bid Item Description 



Estimated 
Quantity 



Unit 



Unit 
Price 



Extension 



REMOVABLE TRAFFIC ROUTING GRADE 
TAPE, 2 FEET LONG BY 4 INCHES WIDE 



2,000 



EA. 



fft> 



Xcfrf), 



37 



REMOVABLE TRAFFIC ROUTING GRADE 
TAPE, 12 INCHES WIDE FOR STOP OR 
CROSSWALK LINES 



500 



L.F. 



I, its. 



38 



REMOVABLE TRAFFIC ROUTING GRADE 
TAPE, 4-INCH DOUBLE YELLOW 



4,000 



L.F. 



S. 



4 ow. 



39 



UNDERGROUND MASTER & IRRIGATION 
CONTROL CONDUIT 



L.S. 



/o^oop , 



40 



CASH ALLOWANCE FOR UNDERGROUND 
PIPE LOCATING 



50.000 



TOTAL OF BID PRICES 1 THROUGH 40 



s£.<<tn,M0. 



ADDITIVE ALTERNATES: The following additive Alternates [ scheduled in Section 01030 of the 
Specifications ] will be selected by the City in a specific descending order o/priority which will be 
announced immediately before opening of the Bids. The Contract will be awarded to the lowest 
responsive; responsible Bidder based on the Base Bid and maximum number of Alternates not 
exceeding the City's construction budget. In the event that the Base Bid submitted by the lowest 
responsive, responsible Bidder is greater than the construction budget amount, the Contract may be 
awarded based on the Base Bid of the lowest responsive, responsible Bidder. The amount available in 
the construction budget will be announced immediately before the opening of the Bids. 

The undersigned further proposes and agrees that if an Alternate is incorporated in the Contract within 
up to 2 months after the Notice to Proceed, the Contract Sum will be adjusted by the addition of. the 
Alternate Price bid for the selected Alternate. 



07/13/98 



00310-5 



Schedule of Bid Prices 



22 



SCHEDULE OF BID PRICES (REV. 3) 

ADDENDUM NO. 3 

(PAGE 6 OF 7) 

BOWLING GREEN DRIVE UTILITES 

CONTRACT AREA 37 & 45 

SPECIFICATION NO. 1077N 

JULY 8, 1998 



Page 6 of 6 



Alternate No. 



Additive Alternate Description 



Amount 



A-l 



Storage/Equalization Reservoir, Pumping Equipment 
Collection System, and Force Main 
(Refer to Section 01 030.) 



/, o tq ooo, 



A-2 



Electrical Service To Conservatory Of Flowers Area 
(Refer to Section 01030.) 



^T-.ooo 



A-3 



Electrical Power To Casino Meadows Area 
(Refer to Section 01030.) 



6 Foot wide Asphalt Pathway along Middle Drive East 
from Steinhart Aquarium to Bowling Green Drive 
(Refer to Secti ,0.) 



[$, t oo- 



A-4 



17-, 600, 



Jysppptt **< f toy ooo 

Note: Alternate prices shall include markups for overhead and profit. *^. „. y -X <yg a 

The City will make the actual addition of each Alternate to the Base Bid. 4^^7// *\3~- 

Time allowed for completion of the work shall be the number of calendar days specified in the Supplementary 
Conditions, beginning with and including the official date of Notice to Proceed as established by the 
Director of Public Works, regardless of whether the Contract is awarded under the Base Bid or on the 
basis of the Base Bid and any Alternate or any combination of Alternates. 



Schedule of Bid Prices 



00310-6 
23 



07/13/98 



Attachment III 



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Attachment IV 



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25 



Attachment V 
Page 1 of 2 



MEMORANDUM 



DATE: 


October 23, 1997 


TO: 


Joel Carpio 




DPW: 30 Van Ness Avenue, 5th Floor 


THRU: 


Peter Woo 




Senior Traffic Engineer 


FROM: 


Dr. Roop Jindal 




Traffic Engineer 



SUBJECT: 1 992 GOLDEN GATE PARK BOND 
CONTRACT AREA 37 

BOWLING GREEN DRIVE; SPEC. NO. 1077N 
FUNDS REQUIRED BY DPT DURING CONSTRUCTION 



We have sent PS&E for the Traffic Routing for the subject project on September 26, 1997. 

We will support the project during construction by attending meetings with the Resident 
Engineer and the Contractor, conduct inspections, review traffic submittals, install final 
pavement markings and install new traffic signs. 

Our estimate is attached. The summary of the funds required during construction by our various 
sections is given below: 



SECTION 


TASK 


AMOUNT 


1 ) Traffic Engineering 


Review Traffic Control plans. Attend 
meetings, conduct special inspections. 


$10,000 


2) Paint Section 


Install striping for traffic lanes, crosswalks, 
curb ramps, crosswalks etc. 


$28,000 


3) Sign Section 


Install new traffic signs. 


$2,500 



Total: 



$40,500 



26 



Attachment V 
Paee 2 of 2 



Mr. Joel Carpio 

Bowling Green Drive 

Funds for DPT for Coi f ru tit i Phase 

October 23, 1997 

Page 2 



Please transfer $40,500 to our department to support this project during the construction phase. 

We appreciate your cooperation in working with us if you have any questions, please call me at 
554-2330. 



C: Kathryn Hile: DPT Fiscal Officer, 25 Van Ness Avenue, 4th Floor 

Al Herce: DPT: Traffic Engineering, 25 Van Ness Avenue 



FILE: EST\BOWLCONS 



27 



Memo to Finance Committpp 

December 2, 1998 finance oon t fctee Meeting 

Item 5 -FiL, 98- 1890 



Department: 
Item: 



Fire Department 

Hearing to coi der release of reserved funds (a) from 
1992 General Obligation Fire Department Improvement 
Lond Pioceeds in the amount of $341,613 and (b) from 
previously b.uJioiized Federal Emergency Management 
Agency (FEMA) Hazard Mitigation Grant Funds, in the 
amount of $458,387, for the renovation of Fire Station No. 
29. 



Amount: 



Source of Funds: 



Description: 



1992 General Obligation Fire Department 

Improvement Bond Proceeds $341,613 

FEMA Hazard Mitigation Grant Funds 458.387 

TOTAL $800.000 

Release of reserved funds of $341,613 from previously 
appropriated 1992 General Obligation Fire Department 
Improvement Bond Funds and Interest Earnings. 

Release of reserved funds of $458,387 from FEMA Hazard 
Mitigation Grant Funds. 

In November of 1902, thr -"oter^ approved Proposition C, 
General Obligation 1992 Fire Department Improvement 
Bonds totaling * '° «00 000 to r - .^rovemen^ 

related to various Fire uepiAiiment facilities 

In November of 1996, the Board of Supervisors approved 
an ordinance appropriating $14,233,588 from these 1992 
Bond Funds for architectural and engineering services 
and construction costs in connection with the renovation 
of 20 Fire Department facilities (File 101-96-12). Because 
DPW had not selected contractors to perform the 
renovation work for 17 of the 20 Fire Department 
facilities, the Board reserved a total of $7,864,100 
pending DPW's selection of contractors and submission of 
contract cost details. Current reserved funds are 
$5,185,841. 

The proposed request would authorize the release of 
$341,613 for the renovation of Fire Station No 29 1 ated 
I Vermont Str 28 on reserve. 



Board of Supervisors 
Budget Analyst 

28 



Memo to Finance Committee 

December 2, 199o T ana. _^ .mittee Meeting 

On November 17, 1997, the Board of Supervisors 
authorized the Department of Public Works (DPW) to 
retroactive; ly accept and expend grant funds in the 
amount of $6,216,434 from FEMA, through the State 
Office of Emergency Services (OES) for eleven projects 
(File No. 148-97-5) related to hazard mitigation, including 
the renovation of Fire Station No. 29. Pending DPW's 
submission of construction cost details, $4,196,840 of 
these funds were placed on reserve. Current reserved 
funds are $822,387. This request would also authorize the 
release of $458,387 for the renovation of Fire Station No. 
29, leaving $364,000 on reserve. 

According to Peter Wong of DPW, construction work to be 
performed for the renovation of Fire Station No. 29, 
consists of structural upgrades, asbestos abatement, 
mechanical and electrical system upgrades, increased 
disabled access on the main floor, and separate shower 
and locker facilities for men and women. 

Budget: The construction costs for the renovation of Fire Station 

No. 29, including subcontractor costs and alternate costs, 
with a maximum amount of $804,290, was awarded to 
C.H. General Construction, LTD., which submitted the 
lowest bid. DPW provided the following budget for this 
$804,290 project. 



Board of Supervisors 
Budget Analyst 

29 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Prime Contractor MBE/LBE (25.61% of Base Bid) 

C.H Cereral instruction, LTD. $199,189 

Subcontractors MBE (35.93% of Base Bid) 

Lovie's Construction (Plumbing) $35,800 

Yum's Mechanical (Mech.) 98,000 

Urey Electrical 88,000 

Pioneer Roofing 57,675 



279,475 



38,500 



Subcontractors WBE (4.95% of Base Bid) 

Pivot Construction (Rough Carpentry) 38,500 



Subcontractors Non-WBE/MBE (33.53% of Base Bid) 
FW Construction (Demo/Carpentry) 139,000 

Synergy Environmental 5,500 

Dees-Hennessey (Shotcrete) 5,985 

Standard Cabinet 29,500 

Kwan Wo Iron Works 4,800 

Joe Wang (Flooring) 22,000 

Global (Partitions) 9,551 

Color Link Painting . 35,000 

Supreme Gyms (C lazing) 9.500 



Added Alternates 
Alternate 1 - Kitchen Cabinetry 
Alternate 4 - Interior Painting 
Alternate 3 - Overhead Security 
Alternate 5 - Exterior Painting 

Total Alternates 26.290 

TOTAL $804.290 







260.836 


Total Base Bid 


9,800 
4,000 


$778,000 


oors Painting 


2,500 
9.990 





Board of Supervisors 
Budget Analyst 

30 



Memo to Finance Committee 

December 2, " n < 'ommittee Meeting 



Comments: 



1. Mr. Wong reports that C.H. General Construction, 
IT! . was selected as the low bidder through an Invitation 
foi Bids process. The firms which bid for this contract and 
tueir bid amounts for the contract including the four cost 
alternates, are as follows: 



Riridors Amount Bid 

C.H. General Construction, LTD. $804,290 

Kin Wo Construction, Inc. 813,600 

Competent Builders, Inc. 918,000 

Alten Construction 919,645 

Seto's Construction 955,000 
LC General Engineering & Construction, Inc. 1.014,500 

2. In November of 1996, DPW provided an attachment to 
the Budget Analyst in support of the then-proposed 
ordinance appropriating $14,233,588 from the 1992 
General Obligation Fire Department Improvement Bonds, 
which estimated construction costs for Fire Station No. 29 
to be $800,000, to be fully funded by the Fire 
Department's 1992 Bond Funds. Mr. Wong states that 
because FEMA grant funds have since become available 
for this construction project in the amount of $458,387, 
only $341,613 is needed from the Bond Funds. Mr. Wong 
states that the remaining $458,387 in allocated but 
unspent Bond Funds will be retained in the Bond Reserve 
Fund, and will be used to fund Fire Department projects 
as needed. 



Recommendation: 



3. As noted above, the proposed request for release of 
reserved funds of $800,000 for the renovation work is 
$4,290 less than the total construction contract of 
$804,290. According to Mr. Wong, the source of the 
additional $4,290 would be previously appropriated 1992 
General Obligation Fire Bond monies. 

Approve the requested release of reserved funds in the 
amount of $341,613 from the 1992 General Obligation 
Fire Department Improvement Bond Proceeds, and in the 
amount of $458,387 from the Federal Emergency 
Management Agency Hazard Mitigation Funds. 



Board of Supervisors 
Budget Analyst 

31 



Memo to Finance Committee 

D-: -:*en±be: ■? i°°«^ Committee Meeting 



Item 6 - F". 98-1843 

Departmei^: 

Item: 



Services to be 
Performed: 



Description: 



District Attorney 

Resolution concurring with the Controller's certification 
that assistance to certain victims of crime and education 
in community anti-street violence can continue to be 
practically performed for the District Attorney's Victim- 
Witness Assistance Program by a private contractor for a 
lower cost than similar work services performed by City 
and County employees. 



Victim Witness Services for the District Attorney's Victim 
Witness Assistance Program 

Charter Section 8.300-1 provides that the City may 
contract with private firms for services which had been 
performed by City employees if the Controller certifies, 
and the Board of Supervisor concurs, that such services 
can in fact be performed by private firms at a lower cost 
than similar services performed by City employees. 

The Controller has determined that contracting for Victim 
Witness services for FY 1998-99 would result in estimated 
savings as follows: 



Comments: 



City-Operated Service Costs 


Lowest 
Salary 
Step 


Highest 
Salary 

Step 


Salaries 
Fringe Benefits 
Operating Expenses 
Total 


$127,275 
28,801 
18.337 

$174,413 


$150,819 
32,502 
18,337 

$201,658 


Contractual Services Cost 


(118,457) 


(118,457) 


Estimated Savings 


$55,956 


$83,201 



1. A private contract for Victim- Witness services was first 
certified as required by Charter Section 8.300-1 in 1981 
and such services have been provided by an outside 
contractor since then. 



HO ARD OF SUPERVISORS 
BUDGET ANALYST 

32 



Memo to Finance Committee 

December 2, 1998 finance Committee Meeting 



2. The current one-year contract with Community United 
Against Violence (CUAV), a non-profit corporation, 
expired on June 30, 1998. The District Attorney's Office 
is seeking to renew the current one-year contract for 
Victim-Witness services with CUAV. Ms. Grace Chan of 
the District Attorney's Office advises that contractual 
services are provided on a sole-source basis by CUAV 
because CUAV started the Victim-Witness Assistance 
Program in 1981, and therefore is uniquely qualified to 
provide the service. 

3. As previously noted, the CUAV contract to provide 
Victim-Witness services expired on June 30, 1998. 
Approval of the proposed resolution is required before the 
expired contract with CUAV can be renewed for FY 1998- 
99. According to Ms. Chan. CUAV is currently providing 
Victim-Witness services for FY 1998-99 without a 
contract. As such, the proposed resolution should be 
amended to retroactively concur with the Controller's 
certification. 

4. The Contractual Services Cost used for the purpose of 
this analysis is the current contractor's (CUAV) proposed 
costs for Victim-Witness services for FY 1998-99. 

5. The Controller's supplemental questionnaire with the 
Department's responses is attached. 

Recommendation: In accordance with Comment No. 3. above amend the 

proposed resolution to provide for retroactivity and 
approve the proposed resolution as amended. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

33 



Attacnment 



CHAtfTfcS 8.300-1 (PROPOSITION J) QUESTIONNAIRE 

DEPARTMENT: Pis trie - Atto--»v^ o ^,- t 

CONTRACT SERVICES: C fltanur.ity United Again st Violence 

CONT? i CT Pl.-ilJO: '/ -/^ -o/ - -/ .-, 

(1 ) Who partormad acSvity/aarvica prior to contracting out? 

No one performed these services before CUAV . 

(2) Number of Crty ©mpioyaaa laid off u a rtsuit of contracting out? 

No City employees laid off. 

(3) EatfaJn disposition of ampioyaaa H may wart not laid off? 

N/A. 

(4) ^^r? 1 P#fC * ma5 * °* City • fT1 P*°y*« , » tima la «p*nt on sarvtaa* to ba contractad 

N/A . , 

(5) How tang nava tha tarvicaa baan contracted out? la this likaly to ba a cna-tims 
or an ongoing requaat for contneting out? 

Since early 1980's:- 1983 1 * 

(6) What wa* tha first fiscal year for a Propcsrtion J certification? Haa it bean certified 
for each subsequent yaar? 

(7) Hew wiJI contract services maat the goaia of your M8EAVBE Action Plan? 

(8) Doaa tha prepcaad contract require that tha contractor provide hearth inauranca 
for ita empicyeea? Even H ft la net required, does tha proposed contracttr provide 
health insuranca for its employees? 

CUAV does provide healch isurance for ics employees. 

1. A prior Proposition J Questionnaire indicates that the services have been 
contracted out since 7/1/81 and will be an ongoing request. 

2. A prior Proposition J Questionnaire indicates that the first fiscal year for 
Prop J certification was 1981 and it has been certified each subsequent year. 

Departmant Representative: irici a S capieton 

Telophone Number ^15/55 1 " 9 c 4 3 



34 



Memo to Finance Committee 

December 2 1 99b r mance Committee Meeting 



Item 7 -File 9 8- 1879 
Department. 

Item: 

Amount: 
Source of Funds: 
Description: 



Budget: 



I ublic Utilities Commission (PUC) 
Department of Public Works (DPW) 

P° solution approving the expenditure of funds for the 
emergency work to replace the structurally inadequate 
sewer on 19 th Street from Guerrero Street to Dolores 
Street. 

$132,602 

FY 1997-98 PUC Repair and Replacement Fund 

The PUC advises that on January- 14, 1998, the sewer 
located on 19 th Street from Guerrero Street to Dolores 
Street collapsed, and immediate repairs were required in 
order to protect the health, welfare, and property of the 
citizens of San Francisco. The PUC declared an 
emergency on January 14, 1998. In accordance with 
Section 6.30 of the Administrative Code, the PUC 
initiated expedited contract procedures, and awarded a 
contract to K.J. Woods Construction, Inc. in the amount 
$106,000. 

The total estimated project cost is $132,602, including 
! in actual construction costs (or $6,398 less than 
the bid amount; see Comment No. 2) and $33,000 for 
DPW engineering and construction management costs. 

A summary of this budget is as follows: 

Construction Contract $99,602 

DPW Bureau of Engineering 18,000 

DPW Bureau of Construction Management 15.000 

Total $132,602 

Attachment I provided by the PUC provides further 
budget details to support this $132,602 budget. 
Attachment II provided by the DPW details the DPW 
Bureau of Engineering and Bureau of Construction 
Management costs. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

35 



Memo to Finance Committee 

December 2, II 3 Finance Committee Meeting 



Comments: 



1. Seven bids were received to PUC from qualified 
contractors. PUC reports that K.J. Woods Construction, 
Inc. submitted the lowest bid and was awarded the 
contract in the amount of $106,000. The following table 
lists the bidders and the amount bid: 



Bidder 



Bid Amount 



K.J. Woods Construction, Inc. 

Uniacke Construction Co., Inc. 

Alpine Construction 

Harty Pipelines, Inc. 

Shaw Pipelines. Inc. 

JMB Construction, Inc. 

A. Ruiz Construction Co. 



$106,000.00 
$107,380.00 
$114,935.00 
$117,820.00 
$119,870.00 
$120,578.00 
$189,540.00 



2. PUC reports that although the contract, as awarded to 
K.J. Woods Construction, Inc. was for $106,000, the final 
contract costs after adjustment for actual quantities used 
during construction was $99,602 or $6,398 less than the 
contract amount of $106,000. 

3. PUC reports that the repair work of the damaged 
sewer began on January 28, 1998 and was completed on 
Februarv 17, 1998. 



Recommendation: 



4. Mr. PT Law of the DPW advises that due to various 
delays in receiving expenditure documentation from the 
contractor, the PUC is requesting approval of this 
resolution approximately nine months after the 
construction work was completed. 

Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

36 




Attachment I 
Page 1 of 3 

98-0261 



AGFNDA ITEM 

DEPARTMENT _ Laiitit- Eflgittfifiriag Bu reau AGENDA NO. 



15 



MEETING DATE October 27, 1998 



SUMMARY OF PROPOSED ACTION: 

Approval of the Declaration of Emergency by the President of the Public Utilities Commission for Clean 
Water Contract No. CW-149, "19* Street Emergency Sewer Replacement" and Requesting the Board of 
Supervisors to Approve the expenditure of funds for the emergency work to repair the structurally inadequate 
sewer on 19 th Street from Guerrero Street to Dolores Street. 

DESCRIPTION OF PROPOSED ACTION: 

The work performed under this Emergency consisted of performing traffic routing work and trench support 
work; videotaping existing active side sewers; constructing 589 linear feet of 12-inch diameter vitrified clay 
pipe (VCP) on crushed rock bedding, 10-inch diameter VCP culverts, concrete manholes, and 6 or 8-inch 
diameter side sewer connections; removing existing sewers and manholes; videotaping newly constructed 
main sewers; cleaning existing catchbasins; installing cast-iron water traps for catchbasins; reconstructing the 
pavement and all related incidental work on 1 9 th Street from Guerrero Street to Dolores Street This work 
included all planning, design, and construction support services (under Job Order No. 1575N). 

Invitations for 4uoutuuas . r^e iax. to ivw.ity-twi, ^ 12) inliu.^ ui j on Jani^u_ ' . y 



APPROVALS: 



BUREAU 



M 



37 



Attachment I 
Page 2 of 3~ 
Quotations were received from seven (7) firms on January 22, 1 998 as follows: 

Contractor Quote Quote Adjusted Rank 

Amount Preference Amount (•) 



1. K.J. Woods Construction, Inc. SI 06,000.00 5% SI 00,700.00 1 
(LBE) 

San Francisco, CA 941 1 6 

2. Uniacke Construction Co., Inc $107,380.00 5% S102.011.00 2 
(LBE) 

San Francisco, C A 94 1 3 1 

3. Alpine Construction $114,935.00 5% $109,188.25 5 
(LBE) 

San Francisco, CA 94122 

4. Harry Pipelines, Inc. $117,820.00 10% $106,038.00 3 
(LBE/WBE) 

San Francisco, CA 94132 

5. Shaw Pipelines, Inc. $119,870.00 5% $113,876.50 6 
(LBE) 

San Francisco, CA 94134 

6. JMB Construction. Inc. $120,578.00 10% $108,520.20 4 
(LBE/WBE) 

San Francisco, C A 941 12 

7. A. Ruiz Construction Co. S189.540.00 10% S170.586.00 7 
(LBE/MBE) 

San Francisco, CA 94 1 1 

(*) For comparison of bids after application of business enterprise preferences. 

Work is of lump sum and unit bid item type. 

Application of business enterprise quote preferences in accordance with Chapter 12D of the San Francisco 
Administrative Code did not change the final ranking of the lowest quotation. 

The Engineer's Estimate for this contract was SI 29,070.00. The contract as awarded to K..J. Woods 
Construction, Inc. was for $106,000.00. The final contract cost after adjustment for acrual quantities used 
during construction is $99,602.00. 



38 



Therefore the cn\ jf this project is estimated to be $132,502: 

Bureau of Engineering (Planning, Design, and Construction Support) 
Bu^aii of Construction Management (Construction Inspection) 
Fi.in] w^iisu nation Contract Cost 
^otal Project Cost Estimate 



Attachment I 
Page 3 of 3 



518,000 

$15,000 

S99.602 

$132,602 



This project is nan of the Clean Water Program's continuing Sewer Repair and ReplacementPrograrn. Funds 
arc _ aflat : torn the Repair and Replacement Fund (Fund 5C/CPF/R&R, FAMIS Project No. 
CENRNRR953, Job Order No. 1S75N). 

Affirmative Action 

Because this was an emergency contract, no subcontracting goals were established. 

Schedule 

KJ. Woods Construction, Inc. began the work on January 28, 1998 and completed it on February 17, 1 998. 

CONTEXT OF THIS ACTION: 

On January 14, 1998, PUC Sewer Operations notified the Hydraulic Engineering Section of the Bureau of 
Engineering that the existing 1 8-inch diameter sewer located on 1 9* Street from Guerrero Street to Dolores 
Street had collapsed sections. Sewer Operations further requested the Bureau of Engineering to prepare an 
Emergency Contract to repair this sewer. 

Letters informing the UEB Manager, the PUC President, the Mayor, the Controller, and the Board of 
Supervisors of the emergency situation were sent on January 14, 1998. The Declaration of Emergency has 
been signed by the President of the PUC. 

The Bureau of Engineering prepared the plans and specifications for this emergency contract 

Attachments: 

1. Resolution 

2. Draft Board of Supervisors Resolution 



Contact Person: 

cc: P.T. Law 
C. Jacobo 



Mr. Norman Chan 



B. Chase 
F. Bongolan 



C. Tang 
B. Lim 



Phone: 



554-8355 



P. Scott 
M. Williams 



** TOTfiL PAGE. 07 ** 



39 



Cost Breakdown for ( J.O. #1575N, Contract #CW-149) 
19th St. Emergency Sewer Replacement 



Burasu of Engineering 



Classification 


Tltte 


^ate 


MOurG 




Cost 


5504 


Project Manager II $ 


92 


8 


S 


736 


5206 


Associate CMI Engineer $ 


75 


39 


s 


2.925 


5202 


Junior CMI Engineer $ 


50 


94 


s 


4,700 


5366 


Civil Engineering Associate II $ 


60 


111 


$ 


e.660 


5381 


Engineering Student Trainee It S 


33 


33 


I 


1,089 


1426 


Secretary $ 


43 


44 


* 


1,892 



Rounded: 5 



18,002 
18,000 



Bureau of Construction Management 



Rounded: 



Classifies tion 


Title 




Rale 


Hours 




Cost 


5210 


Senior Civil Engineer 


5 


100 


7 


S 


700 


5208 


Civil Engineer 


S 


80 


15 


s 


1.200 


5204 


Assistant CMI Engineer 


$ 


59 


123 


s 


7.257 


5318 


Construction Inspector 


s 


74 


79 


1 


5.346 



15,003 
15,000 



40 



Memo to Finance Committee 

December 2 19£ 8 Fi lance Committee Meeting 

Item 8 -File 36-108O 



Department: 



Item: 



Public Utilities Commission (PUC) 
Hetch Hetchy 

Resolution authorizing expenditure of $750,000 for 
emergency restoration of supporting soil around Moccasin 
Newark Transmission Line Tower Footings and repair to 
access roads in Corral Hollow. 



Amount: 
Source of Funds: 

Description: 



$750,000 

Previously appropriated FY 1997-98 Hetch Hetchy capital 
improvement funds. 

On February 13, 1998, PUC declared an emergency, 
requiring immediate repairs to the Hetch Hetchy 
Moccassin Newark Transmission Line Tower Footings 
and access roads in Corral Hollow caused by erosion of 
soil due to unusually intense and prolonged rainfall. 

The PUC reports that Corral Hollow, located in between 
Alameda County and San Joaquin County, is a seasonal 
creek that responds quickly to local rainfall and at peak 
flows will extend up to a width of 1,000 feet. During peak 
flows, the water level rises above the base of the Hetch 
Hetchy towers and can wash away soil at the footing of 
these towers. The creek flows of January and February 
1998 have resulted in the removal of soil covering several 
tower bases. 

The removal of the soil covering the tower bases results in 
the transmission towers being laterally unstable and 
subject to overturning as a result of wind and angularity 
loadings 1 . PUC reports that this is an extreme danger to 
public health and safety. Additionally, PUC reports that 
the structural failure of one of these towers would result 
in the interruption of power transmission and substantial 
financial losses to the City. 



1 Objects placed off-center at the top of a transmission tower which cause the weight at the top of the 
tower to he unevenly distributer!. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



41 



Memo to Finance Committee 

December 2, 199^ Finance Committee Meeting 



Budget: 



In accordance with Section 6.30 of the Administrative 
Code, the PUC initiated expedited contract procedures 
and awarded a contract to Retaining Walls Co. in the 
amount of $610,000. 

The total estimated project cost is $750,000. A summary 
budget is as follows: 



Construction 


$610,000 


PUC Utilities Engineering Bureau 


75,000 


Contingencies 


65.000 



Comments: 



Total 



$750,000 



Attachment I, provided by Hetch Hetchy, contains the 
budget details to support this $750,000. Attachment II, 
provided by the PUC Utilities Engineering Bureau, 
details the engineering and inspection costs. 

1. Three bids were received by the PUC. The PUC 
reports that Retaining Walls Co. submitted the lowest bid 
and was awarded the contract in the amount of $609. J ! I 
The table below lists the bidders and the amounts bid: 



Bidder 



Bid Amount 



Retaining Walls Co. 
Ranger Pipelines, Inc. 
Shimmick Construction Co. 



Inc 



$609,444 
$615,869 
$699,230 



Recommendation: 



2. Mr. Larry Klein, General Manager of Hetch Hetchy. 
reports that the repair work on the Hetch Hetchy 
transmission tower footings and access roads in Corral 
Hollow began on November 1, 1998. Because of the 
unseasonably late storms followed by the peak 
recreational summer usage of this area and inaccessibility 
because of access road wash-outs, the PUC was not able to 
begin work when the emergency was declared in February 
of 1998. Mr. Klein states that the work is anticipated to 
be completed by December 31, 1998. 

Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

42 



Attachment I 
Page 1 ei-3- 




AGENDA ITEM 98-0260 

Public Utilities Commission 

City and County of San Francisco 



DEPARTMENT Hetch Hetchy Water and Power AGENDA NO. 



1£ 



MEETING DATE October 27, 1998 



| SUMMARY OF PROPOSED ACTION: 

Confirming Emergency Conditions affecting Hetch Heichy Water and Power Moccasin- Newark 
Transmission Line Tower Footings and Access Roads in the Corral Hollow area arising from severe 
storms in January and February 1998, authorizing the Manager, Hetch Hetchy Water and Power to 
undertake immediate measures to make repairs necessary, and requesting the Board of Supervisors to 
approve the expenditure of funds to perform the emergency restoration work. 



DESCRIPTION OF PROPOSED ACTION: 

The Manager, Hetch Hetchy Water and Power, recommends that the Commission adopt the attached 
resolution which ratifies the Declaration of Emergency dated February 13, 1998, by which the President 
of the Commission declared an emergency on behalf of the Public Utilities Commission. The Declaration 
of Emergency was made in accordance with Section 6.30 (1) of the Administrative Code of the City and 
County of San Francisco. 

Corral Hollow Creek is a seasonal creek which typically experiences minimal wet weather flows. In 
January and February, the intensity and duration of rainfall associated with the EI Nino resulted in the 
creek rising to a high level and attaining a width of approximately 1 000 feet. Because of the relatively fine 
grain size of the cieek ucd sou, ^^lificant erosion of the creek bed and the surrounding terrain took place. 
There are 13 transmission towers in the Moccasin Newark Transmission Line that are located in the flood 
area, and the scouring resulted in removal of a significant amount of soil surcharge from around the 1 1 5kv 
transmission line tower footings. Soil surcharge over the footings to a height of 4" below the top of the 
currently exposed concrete foundation is necessary for the combined design forces of maximum wind, 
angularity and three wires down. Without the soil surcharge, these towers are vulnerable to overturning. 
Such a failure would be disastrous, and, since these towers are also located within a State of California 
Recreation Area, this would have an extreme impact on the health and safety of the public. 

Because of the unseasonably late storms followed by the peak recreational summer usage of this area and 
inaccessibility because of access road wash-outs, the City has only now been able to start work. Three 

APPROVALS: 

finance Steven Carmichael 



I^awrence 


T 


Klein 




.<omaiu« 


A. 


Boldridge 









43 



Attachment I 
Poge - 2 of- -3 



PUC Calendar Item Number 



Department: Hetcri Hetcny Water and Power 



Project: Flood Emergencies 



bids for the work were received from qualified contractors known to be qualified to do the work, and the 
Contract was awar^d to the low bidder, Retaining Walls Company North of Tracy, California. 



! A Notice too Proceed was issued to the Contractor specifying the first contract day October 15, 1998, and 
stating that all work is to be performed within 45 working days. 

All bidders were instructed to use good faith efforts during the execution of the work to achieve a 
combine MBE/WBE subcontracting goal of 20%. Since the work consists of Importing fill material, 
grading and compacting, and constructing chevron shaped flow diversion structures upstream of each of 
the towers that are vulnerable to scouring, the bidders were instructed to use MBE'WBE truckers to the 
maximum possible extent. Three bids were received on October 7, 1998, at the Hetch Hetchy Moccasin 
Construction Office. The bids received are tabulated as follows: 

Bidder Bid Amount 

Retaining Walls Co. North S609.444 

800 E. Grant Line Road 
Tracy. CA 95367 

Ranger Pipelines, Inc. S61 5,869 

P.O. Box 24109 

San Francisco, CA 94124 

Shimrnick Construction Co., Inc. S699.230 

24200 Clawiter Road 
Hayward, CA 94545 

Engineer's Estimate S578.755 

None of the bidders was qualified to receive either MBE/WBE or LBE bid preferences. 

Estimated repair costs under the emergency are tabulated as follows: 

Construction S6 10,000 

Engineering and Inspection S 75.000 

Contingencies S 65,000 

Total S750.0O0 

Funding for the emergency is available in Project CUH76204, Famis Index Code 527624. 



kk 



fa^e 3 ' of' 



n 



Calendar Item Number 



repartment: Hetch Hetchy Water and Power 



Project- Flood Emergencies 



Documentation is being developed and expense records are being kept for all charges on this emergency 
so that the City can obtain the maximum reimbursement from FEMA. 



CONTEXT OF THIS ACTION: 



When the President of the Commission declares an emergency based on Section 6.301 of the administra- i 
five Code, the repair or contract may be executed in the most expeditious manner possible. 

i 

i When possible and if time permits, normal contracting procedures are followed so as to obtain three 
competitive bids as required for FEMA reimbursement. In the case of this emergency, unseasonably late 
storms followed by the peak recreational summer usage of this area and inaccessibility because of access 

i road wash-outs prevented work. This gave the engineers time to prepare plans and specifications, to solicit 
competitive bids, and to award the contract and issue a notice to proceed. 



| ATTACHMENTS: 

i 
! 

Resolution 

Draft Board os Suj rsior's Rcsoiuliuu 



Contact Person: Lawrence T.Klein 



C:\wp61\emer\hhttch2 .wpd 



Phone: 554-0726 



cc : K Cooper S Carmichael 

M Gass C Jacobo E Hintze 
W Melia P Chan B Reyes 



F Mangold 



45 



NUV-^-aa HON 10 = 38 HHWP / UEB FAX NO. 2099892127 p. 02 

Attachment I] 

Cost Breakdown ion 
Emergency Erosion Control Work 
Moccasin Newark Line 
HH-881(E) 



Utilities Engineering Bureau 



Classification Title Rate 


Hours 


Cost 


52 1 Senior Civil Engineer 589 
63 1 8 Construction Inspector $70 
1446 Secretary II $48 


128 

887 

32 


$11,392 

$62,090 

$1,536 


Total: 
Rounded 




$75,018 
$75,000 



46 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Item 9 - File 98-1877 

Department: 

Item: 



Amount: 
Source of Funds: 
Description: 



Department of Public Health (DPH) 

Resolution authorizing the adoption of the County 
Description of Proposed Expenditure of California Healthcare 
for Indigents Program (CHIP) Funds for FY 1998-1999, and 
authorizing the President or duly authorized representative 
of the Board of Supervisors of the City and County of San 
Francisco to certify the County Description of Proposed 
Expenditure of CHIP funds for FY 1998-1999. 

$8,925,704 

California Healthcare for Indigents Program (CHIP) Funds 

California Healthcare for Indigents Program (CHIP) 

In October of 1989, DPH began its implementation of State 
Assembly Bill (AB) 75, the Proposition 99/Tobacco Tax Bill. 
State AB 75 created the California Healthcare for Indigents 
Program (CHIP) to provide counties with funds for the 
provision and expansion of health care services to medically 
indigent adults. 

CHIP funds are used to reimburse participating County 
hospitals, as well as private or non-County hospitals, for 
inpatient, outpatient and emergency services and 
participating private physicians for emergency, obstetric and 
pediatric services provided to indigent persons. 

The Board of Supervisors approved the expenditure of 
$9,050,401 in CHIP funds in the DPH FY 1998-1999 budget. 
In August, 1998, the Board of Supervisors authorized the 
DPH to apply for, accept, and expend retroactively CHIP 
grant funds for FY 1998-1999 (File 98-1290). At the time that 
the Board of Supervisors approved the grant application for 
CHIP funds, the DPH estimated a FY 1998-1999 allocation of 
$9,150,401 in CHIP funds. The final amount approved by 
the State of $8,925,704 reflects a decrease of $124,697 over 
the originally anticipated allocation of $9,050,401 (see 
Comment No. 1). 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

47 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Requirement of County Description of Proposed 
Expenditures of CHIP Funds 

The DPH advises that State regulations require that the 
County submit to the State, on an annual basis, a description 
of the County's proposed expenditures of the CHIP funds and 
that the President of the Board of Supervisors or duly 
authorized representative certify that expenditure 
description which is the subject of this proposed resolution. 

CHIP Funds 

The DPH reports that for FY 1998-1999, the County will 
receive an allocation, totaling $8,925,704 in CHIP funds as 
follows: 

County Hospitals Fund $6,197,561 

Non-County Hospitals Funds 577,020 

Physician Services Funds 651,842 

Other Health Services Fund 1,499.281 

Total for CHIPS Funds $ 8,925,704 

Proposed Expenditure of County Hospitals Fund 

San Francisco General Hospital (SFGH) has been designated 
as the City's recipient of CHIP funds earmarked for County 
hospitals. For FY 1998-1999, the total amount available for 
expenditure by SFGH is $6,197,561. The DPH's proposed 
expenditure plan provides for the expenditure of the 
$6,197,561 as follows: 

SFGH Indigent Care $ 5,733,773 

Child Health and Disability Prevention 

Treatment Services 62,322 

DPH Administrative Costs 401.466 

Total for County Hospitals Fund S 6,197.561 

Proposed Expenditure of Non-County Hospitals Funds 

For FY 1998-1999, the total amount available for 
expenditure by eight non-County hospitals is $577,020. 

Of the total amount of $577,020, $288,510, or 50% of the 
CHIP private hospital funds, will be allocated to the City's 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

IP. 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



eight local non-County hospitals. The eight non-County 
hospitals are: (1) California Pacific Medical Center, (2) 
Chinese Hospital, (3) Davies Medical Center, (4) Medical 
Center at the University of California, San Francisco, (5) St. 
Francis Memorial Hospital, (6) St. Luke's Hospital, (7) St. 
Mary's Hospital and Medical Center, (8) University of California - 
San Francisco/Mt. Zion. 

Non- County Hospitals (8) 

(based on State determination) $ 288.510 

Total for eight Non-County Hospitals 

(based on State determination) $ 288,510 

The remaining $288,510, or 50% of the CHIP private 
hospitals funds will be allocated by the DPH under a 
discretionary category. The CHIP discretionary funds are 
not required by State regulations to be allocated to all 
private hospitals. Therefore, the DPH has the discretion to 
allocate these funds to one or more private hospitals for the 
provision of health care services to indigent persons, as it 
deems appropriate. DPH intends to allocate the $288,510 by 
reimbursing the local non-county hospitals identified above 
and paying for the associated costs as follows: 

Non-County Hospitals (discretionary by DPH) $ 256,774 

Professional Services Contract 

(Managed Care Solutions, Inc.) 31,736 

Total for eight Non-County Hospitals 

(discretionary by DPH) $ 288,510 

Proposed Expenditure of Physician Services Fund — 
Emergency Medical Services Fund Account 

In accordance with State regulations, the DPH has 
established an Emergency Medical Services (EMS) Fund 
account. 

Of the $651,842 allocated for Physician Services for FY 1998- 
1999, $325,921 or 50% would be deposited to the EMS Fund 
account. 

For FY 1998-1999, the DPH's proposed expenditure plan for 
the Emergency Medical Services Fund account provides for 
the expenditure of the $325,921 as follows: 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

49 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Physician Services $ 293,329 

Professional Services Contract 

(Managed Care Solutions. Inc.) 32.592 

Total for Emergency Medical Services $ 325,921 

Proposed Expenditure of Physician Services Fund — 
New Contracts Fund Account 

Of the $651,842 allocated for Physician Services for FY 1998- 
1999, $325,921 or 50% would be allocated to the New 
Contracts Fund account. 

For FY 1998-1999, the DPH's proposed expenditure plan for 
New Contracts Fund account provides for the expenditure of 
the $325,921 as follows: 

Physician Services $ 173,034 

Child Health and Disability Prevention 

Treatment Services 120,295 

Professional Services Contract 

(Managed Care Solutions, Inc.) 32,592 

Total for New Contracts $ 325,921 

Proposed Expenditure of Other Health Services Fund 

For FY 1998-1999, the total amount available under the 
CHIP Other Health Services Fund is $1,499,281. 

For FY 1998-1999, the DPH's proposed expenditure plan for 
the Other Health Services Fund provides for the expenditure 
of the $1,499,281 as follows: 

SFGH Indigent Care $ 1,357.805 
Professional Services Contract 

(Managed Care Solutions, Inc.) 46,877 

DPH Administrative Costs 50,244 
Child Health and Disability Prevention 

Treatment Services 44.355 

Total for Other Health Services $ 1,499.281 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

50 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Comments: 1. Allocation Less Than Approved Amount 

As previously noted, Mr. Jeff Leong of the DPH reports that 
the CHIP Expenditure Plan reflects the final FY 1998-1999 
allocation of $8,925,704 in CHIP funds which is $124,697 
less than the $9,050,401 approved in the DPH's FY 1998- 
1999 budget. According to Mr. Leong, the decrease of 
$124,697 will be made up through interest earnings on the 
CHIP funds and no services will be affected. 

2. Managed Care Solutions 

According to Mr. Leong, the DPH would continue to contract 
with Managed Care Solutions, Inc. in a total amount of 
$143,797 for FY 1998-1999 for the provision of fiscal 
intermediary services for the participating private hospitals 
and private physicians. These services include the receipt, 
processing and payment of claims in connection with the 
CHIP program. In addition to the fiscal intermediary 
services, Managed Care Solutions, Inc. would continue to be 
responsible for provider relations, information dissemination 
and data reporting, and would assist the DPH in the CHIP 
program management. 

Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

51 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Item 10 - File 98-1881 
Departments: 

Item: 

Amount: 
Description: 



Public Utilities Commission (PUC) 

Hetch Hetchy Water and Power (Hetch Hetchy) 

Resolution concurring with the Public Utilities Commission's 
finding that Hetch Hetchy has a surplus which can be 
transferred to the City's General Fund. 

$42,703,273 

Requirements of Charter Section 16.103 

Charter Section 16.103(b)3 provides that the Public Utilities 
Commission, with the concurrence of two-thirds of the Board 
of Supervisors, may authorize the transfer of any portion of 
surplus funds to the General Fund upon making all of the 
following findings of fact and judgment: 

(A) That a surplus exists or is projected to exist after 
meeting the requirements of this section; 

(B) That there is no unfunded operating or capital 
program that by its lack of funding could jeopardize 
health, safety, water supply or power production; 

(C) That there is no reasonably foreseeable operating 
contingency that cannot be funded without General 
Fund subsidy (meaning that the unappropriated 
fund balance for the Hetch Hetchy operating fund 
is sufficient to meet any "reasonably foreseeable 
operating contingency"); and 

(D) That such a transfer of funds in all other respects 
reflects prudent utility practice. 

Resolution Adopted by PUC 

On October 13, 1998, the Public Utilities Commission 
adopted Resolution No. 98-0250 authorizing a transfer to the 
City's General Fund totaling $42,703,273 in FY 1998-1999 
surplus Hetch Hetchy funds, in accordance with the 
provisions of Charter Section 16.103. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

52 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Comments: 1. The FY 1998-1999 budget, as approved by the Board of 

Supervisors, was based on this proposed subject transfer of 
Hetch Hetchy revenues to the General Fund in the amount of 
$42,703,273. 

2. The General Manager of Hetch Hetchy, Mr. Lawrence 
Klein, estimates that Hetch Hetchy will have an 
Unappropriated Fund Balance of approximately $4,481,983 
at the end of FY 1998-1999, net of the proposed transfer to 
the General Fund. Mr. Klein stated that this balance is 
adequate to provide for reasonably foreseeable contingencies. 

Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

53 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Item 11 -File 98-1689 



Department: 



Item: 



Location: 



Department of Real Estate (DRE) 
Department of Public Works (DPW) 

Resolution authorizing the Director of Property to accept 
a drainage easement deed over private property in the 
Bayview Hill Subdivision. 

The parcel of land affected by the proposed drainage 
easement is on Le Conte Avenue at Jennings Street in the 
Bayview District, known as Assessor's Block 4991, Lots 
108-110. 



Description: 



Comments: 



The proposed resolution would grant easement rights, 
from Mr. Rosario F. Occhipinti, a private developer, to the 
City, over three lots owned by the private developer, 
which are located directly below and adjacent to the City- 
owned Bayview Hill Park. On the subject lots, which are 
currently under residential development, culverts and 
storm drain inlets have been built at the expense of the 
private developer. Such drainage facilities are necessary 
to ensure proper drainage of the City-owned Bayview Hill 
Park and the protection of the privately-owned lots 
located below and adjacent to the Park. 

Approval of the subject resolution would authorize DPW 
to accept a drainage easement deed from the private 
developer, at no cost to the City, and would require DPW 
to maintain and repair the drainage facilities. 

1. According to Mr. Larry Ritter of the DRE, DPW and 
DRE worked closely with the private developer to design 
and install appropriate drainage facilities that would 
protect both the City and the three residential lots by 
allowing proper drainage from the Bayview Hill Park over 
and through the adjacent private property. Mr. Ritter 
notes that the Director of Property and the Director of 
Public Works both recommend approval of the proposed 
resolution. 



2. According to Mr. Ray Gigliati of DPW, the private 
developer has agreed to pay a one-time maintenance fee of 
$2,781 for each of the three lots, for a total of $8,343, 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



when the lots are developed and become occupied, to 
offset DPW costs of maintenance on the subject drainage 
facilities. Mr. Gigliati notes that the fee of $2,781 per lot 
was the estimated amount needed to cover the 
maintenance costs of the drainage facilities for their 
useful lifetime. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Item 12 - File 98-1841 

Department: 

Item: 



Description: 



Department of Real Estate (DRE) 

Resolution authorizing and directing execution of a 
quitclaim deed from the City and County of San Francisco 
to the San Francisco Unified School District, for 
Assessor's Block 3593, Lot 40 (portion), formerly Treat 
Avenue north of 20 th Street, and adopting findings 
pursuant to City Planning Code Section 101.1. 

Subject Property 

This proposed resolution would authorize a transfer, 
through the execution of a quitclaim deed, of City-owned 
real property known as Assessor's Block 3593, Lot 40 
(portion), the former Treat Avenue right of way, north of 
20 th Street, to the San Francisco Unified School District 
(SFUSD). The property, which is vacant land, consists of 
17,700 square feet. Treat Avenue runs parallel to 
Harrison Street on the east and Folsom Street on the 
west. The subject property extends 60 feet in an east- 
west direction, and 295 feet in a north-south direction. 

Need For Title Transfer 

According to Mr. Larry Jacobson of the DRE, legal title 
over the subject property is currently vested in the City, 
but the City vacated the subject property in 1976. 

According to Mr. Jacobson, the powers of management 
and control of school property are vested in the Board of 
Education of the SFUSD. SFUSD, a political subdivision 
of the State of California, has used the subject property 
since 1976 as part of the George Moscone Elementary 
School and the Las Americas Child Care Center, facilities 
which have since been demolished. Prior to converting 
the subject property to school use, the SFUSD relocated 
utility lines and constructed a new street, Mistral Street, 
for a Treat Avenue outlet. 

Consistent with its powers of management and control, 
the Board of Education of the SFUSD approved the 
current construction of the new John O'Connell Technical 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

56 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Comments: 



High School. Upon completion, this new high school 
building will encroach upon the vacated subject proper! y. 
SFUSD seeks to apply for State loans for this new school, 
but in order to do so, SFUSD must hold legal title to the 
subject property. 

To accomplish a full transfer of title of the subject 
property, a conveyance of the subject property to SFUSD 
is needed. According to Mr. Jacobson, a quitclaim deed is 
the customary instrument to effect this transfer of title. 

Planning and Environmental Compliance 

According to the Mr. Stephen Shotland of the Planning 
Department, the proposed quitclaim deed for transferring 
the subject property from the City to the SFUSD is in 
conformity with the City's General Plan. Also, such 
conveyance is categorically exempt from environmental 
review under Class 15061(b)(1) of State Environmental 
Review Guidelines. The Planning Department also found 
that the quitclaim deed is consistent with the Eight 
Priority Policies of Planning Code Section 101.1. 

1. Administrative Transfer 



The SFUSD does not pay the City for the transfer of title 
on the subject property because SFUSD has had 
beneficial use of the property since 1976, according to Mr. 
Jacobson. Mr. Jacobson states that this conveyance is 
merely an administrative transfer which confirms the 
SFUSD's ownership of this property. 

2. Future Plans At Subject Parcel 

According to Mr. Jacobson, the subject property will be 
incorporated into the new John O'Connell Technical High 
School. School structures such as a school gymnasium 
will be built on the subject property, and some of the 
parcel will be used as part of an active sports/playing 
field. According to Mr. Shotland, some of these facilities 
will be made available for community use. 



Recommendation: 



Based on the advice from the Department of Real Estate 
that management and control of the property is already 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

57 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



vested in the San Francisco Unified School District, 
approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

58 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Item 13 - Files 98-1790 



Department: 
Item: 



Purpose of Lease: 



Lessor: 



Airport Commission 

Resolution approving "Boarding Areas 'B' and 'C at the 
South Terminal for the Principal Concession Retail 
Lease" between Pacific Gateway Concessions, LLC. 
(Pacific), and the City and County of San Francisco, 
acting by and through the Airport Commission. 

Pacific is a retail concessionaire that sells apparel, 
newspapers, candy and other retail goods. This new lease 
provides for Pacific's lease of Boarding Areas 'B' and 'C in 
the Airport's South Terminal. 

City and County of San Francisco, through the Airport 
Commission 



Lessee: 



Pacific Gateway Concessions, LLC. is a joint venture 
consisting of two MBE firms, De La Ve, Inc., and Soto & 
Sanchez Investments. 



Number of Sq. Ft. 



Approximately 6,180 square feet in seven retail spaces, as 
identified in the following page. 



Amount Payable 
to Airport: 



The proposed lease would require Pacific to pay the 
Airport the greater of a minimum annual guarantee of 
$2,170,000.99 for the first year of the lease term or a 
percentage of gross revenues realized by Pacific. The 
Minimum Annual Guarantee for the next four years 
would be $2,170,000.99, adjusted by increases in the U.S. 
Department of Labor Department Store Inventory Price 
Index-Soft Goods 1 . According to the lease, the annual 
percentage of gross revenues is 12% for the first $500,000, 
14% between $500,000 and $1,000,000, and 16% for all 
gross revenues in excess of $1,000,000. 



1 According to Ms. Judy Tabimina of the Airport, soft goods are defined as retail goods such as toys, 
sunglasses, and books. The Airport has determined that this price index, published by the United 
States Department of Labor, Bureau of Labor Statistics, is the most appropriate one to apply to 
leases for Airport Concessions. 

Board of Supervisors 
Budget Analyst 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Term of Lease: 



Description: 



Five years, estimated to begin April of 1999, upon 
completion of the required renovation work by Pacific and 
to end April of 2004. 

The proposed resolution would approve a new lease of the 
Boarding Areas 'B' and 'C in the South Terminal at the 
San Francisco International Airport, entitled "Boarding 
Areas 'B' and 'C Principal Concessions Retail Lease" 
between Pacific and the City. 

Under the proposed lease, Pacific would operate seven 
concessions occupying a total of 6,180 feet. The following 
table identifies the types of goods sold at each concession 
and the number of square feet per concession. 



Concession 


Tvpe of Store 


Goods Sold 


Square 


Space 






Feet 


Bl 


Specialty 


Apparel, Souvenirs, Retail Goods 


1,756 


B5 


Leather Goods 


Apparel, Retail Goods 


908 


B6 


Newsstand 


News, Retail Goods 


438 


C2 


Specialty 


Apparel, Souvenirs, Retail Goods 


1,929 


C3 


Specialty 


Coffee, Tea, Spice 


522 


C4 


Newsstand 


News, Retail Goods 


547 


C5 


Candy Cart 


Candy, Retail Goods 


80 






TOTAL 


6,180 



Prior to commencement of the proposed lease, Pacific is 
required to invest a minimum of $150 per square foot to 
renovate 6,180 square feet, or a minimum investment of 
$927,000. Pacific is scheduled to begin renovation work on 
Januarv 10, 1999. 



Comments: 



1. The Airport Commission adopted Resolution No. 98- 
0228 on September 15, 1998, recommending the award of 
the lease to the proposed lessee, Pacific Gateway 
Concessions, LLC, based on a competitive bidding process. 
The award was based on the highest Minimum Annual 
Guarantee bid amount. 



According to Mr. Bob Rhoades of the Airport, the lowest 
Minimum Annual Guarantee qualifying bid for the 
proposed lease was set at $1,200,000, based on a projected 
forecast of gross revenues ranging between $8,000,000 
and $10,000,000, or 12%-15% of gross revenues. 



Board of Supervisors 
Budget Analyst 

60 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Mr. Rhoades stated that the Airport sent the Request For 
Proposals (RFP) to over 500 companies. These 500 
companies are part of the Airport's master list of 
companies that have expressed an interest in leasing 
space at the Airport. The names of the three companies 
that responded to the RFP and their Minimum Annual 
Guarantee bids were as follows. 

Company Annual Guarantee 

Pacific Gateway Concessions, LLC. $2,170,000.99 

CalStar Retail, Inc. $1,840,260.00 

Host International. Inc. $1,700,000.00 

2. The prior lease for the 6,180 feet at Boarding Areas ; B' 
and 'C in the South Terminal was with Host 
International, Inc. (Host). Host's lease included two 
additional concession spaces in Boarding Areas 'B' and 'C 
in the South Terminal consisting of a total of 2,857 square 
feet, for a combined total of 9,037 square feet. Host's lease 
will expire on January 10, 1999. According to Mr. 
Rhoades, although Host's bid for the right to continue 
leasing the 6,180 square feet was not successful, Host was 
successful in its bid to continue leasing the two additional 
concession spaces located in the same terminal, totaling 
2,857 square feet. Mr. Rhoades states that the proposed 
Minimum Annual Guarantee for these other two spaces is 
$410,000, beginning April of 1999, for a total of five years. 

Mr. Rhoades reports that the Minimum Annual 
Guarantee for the period from January 11, 1998 to 
January 10, 1999, or the final year of the lease term with 
Host for the 9,037 square feet, is $2,587,000, or $6,999.01 
more than the $2,580,000.99 Minimum Annual 
Guarantees, including $2,170,000.99 for the proposed 
subject lease from Pacific and $410,000 from Host for the 
same space, for the first year of the proposed lease. 
According to Mr Rhoades, the Minimum Annual 
Guarantee for the last year of the existing lease exceeds 
the sum of the Minimum Annual Guarantees for the first 
year of the two proposed leases because the economic 
turmoil in Asia has caused recent bids to be lower, as less 
items are anticipated to be sold by concessionaires. 

3. As shown in the Attachment provided by Mr. Rhoades, 
a total of $13,697,500 from the Minimum Annual 

Board of Supervisors 
Budget Analyst 

61 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Guarantee revenues is estimated to be paid by Pacific and 
Host to the Airport over the five year term of these two 
leases consisting of the combined 9,037 square feet. The 
projected payment of $13,697,500 is $1,391,500 more than 
the $12,306,000 which was paid by Host, the prior lessee 
of the combined space for 9,037 square feet, over the last 
five years of the existing lease. 

4. The proposed lease provides that Pacific will either (a) 
obtain a surety bond in an amount equal to one-half of the 
Minimum Annual Guarantee payment of $2,170,000.99, 
or $1,085,000.50, which would be payable to the Airport 
in the event of non-payment of rent or non-monetary 
default under the terms of the proposed lease, or (b) 
deposit with the Airport an Irrevocable Letter of Credit, 
Certificate of Deposit, Certified Check, Money Order, or 
Cashier's Check equal to an amount of one-half of the 
minimum annual guarantee payment of $2,170,000.99, or 
$1,085,000.50, as security for faithful performance of the 
lease terms bv Pacific. 



Recommendation: Approve the proposed resolution. 



Board of Supervisors 
Budget Analyst 

62 



"ROM SFIA ADMIN 



(FRI) 11. 13' 98 16:33/ST.16:22/NO. 4360589243 P 2 



TABLE 1 
BOARDING AREA B/C PRINCIPAL CONCESSION LEASE 



The following table summarizes the rent paid under the previous Principal Concession Lease 
with Host (Lease effective 1/11 /94 - 1/10/99) versus the combination of Pacific Gateway (B/C 
Principal Concession Lease) and Host (Bookstore Lease) projected revenues (4/99 - 4/04). 



Year 


Host UVni 


Projected 1* 


acific Gatcvtui / Host Rent" 




(MIIMK) 




(SIMMs) 


1 
2 
3 
4 
5 
Total 


$2,033.3 
$2,559.0 
$2,559.0 
$2,567.7 
$2,587.0 
$12,306.0 




$2,580.0 
$2,657.4 
$2,737.1 
$2,819.2 
$2,903.8 
$13,697.5 


Service Payment 

equal to 15% of Rent $1,845,900 




$2,054,630 


•assumes annual CPI adjustment of 3.0% 







c:\rhoades\lable.doc 
11/13/98 



63 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Item 14 -Files 98-1791 



Department: 
Item: 



Purpose of Lease: 



Lessor: 
Lessee: 
Number of Sq. Ft. 



Airport Commission 

Resolution approving a "Lease Agreement in the North 
Field Cargo Facility" for new cargo warehouse space 
between Nippon Cargo Airlines, Inc. (NCA) and the City 
and County of San Francisco, acting by and through the 
Airport Commission. 

This new lease provides NCA with warehouse, office, and 
cargo by-pass space in the Airport's North Field Cargo 
Facility (Facility), located in the North Field Area of the 
Airport. The Facility is currently under construction, at 
an estimated cost of $59,000,000, and will have NCA, 
Federal Express Corporation (Federal), and at least one 
other airline as tenants. According to Ms. Diane Artz of 
the Airport, the estimated cost of NCAs exclusive 
components of the Facility is $18,000,000. Facility 
Construction costs will be reimbursed to the Airport by 
the tenants' annual rental payments to the Airport. NCA 
presently rents space directly from American Airlines at 
the Airport's Plot 9, and maintains an off-airport location 
in South San Francisco. NCA does not currently lease 
space from the Airport. 

City and County of San Francisco 

Nippon Cargo Airlines, Inc. 

A total of approximately 78,410 square feet of exclusive 
space, including 55,000 square feet of warehouse space, 
6,250 square feet of second floor office space, and 17,160 
square feet of paved land used for cargo by-pass space, 16 
truck dock positions and 5 truck parking positions. Cargo 
by-pass is the corridor between the secure airfield area, 
accessible only to air traffic, and the non-secure area, 
where trucks load airplane-bound cargo onto transport 
machines. All tenant-exclusive and common area space in 
the Facility will total approximately 188,000 square feet 
of warehouse space and 39,000 square feet of office space. 



Board of Supervisors 
Budget Analyst 

64 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Amount Payable 
to Airport: 



The proposed lease would require NCA to pay the Airport 
an annual rent which is the greater of the Cost Amount 1 
or the Market Value Amount 2 . The City will determine 
the exact Cost Amount and the Market Value Amount on 
or before the date that is 150 days before the first rental 
payment to the Airport is due. Mr. Bob Rhoades, Deputy 
Director of Airport Business and Finance, estimates rent 
will be $21.46 per square foot per year, or $1,682,678.60, 
based on the 78,410 square feet and the Cost Amount. 
According to Mr. Rhoades, the $21.46 is estimated to 
recover the capital costs of NCA's components of the 
building, as well as to fully reimburse the Airport for the 
Airport's annual operating and maintenance costs of 
NCA's components of the building. 

The proposed lease also provides for annual increases in 
the annual rent based on increases in the Consumer Price 
Index, with the exception of the sixth year of the proposed 
lease, when the annual rental payment to the Airport will 
be determined by reappraisal of the Facility to the Market 
Value Amount. 



Term of Lease: 



Approximately ten years and six months, estimated to 
begin in October of 1999, upon completion of construction 
of the Facilitv, and to end in March of 2010. 



Description: 



The Airport is constructing a new North Field Cargo 
Facility (Facility) to provide cargo warehouse space as 
part of the Airport's Master Plan Program. Completion of 
the construction is scheduled for October of 1999. 



Under the proposed lease, NCA would use the Facility to 
receive, deliver, dispatch, process, handle and store 
approximately 72 million lbs. per year of computer 
equipment and computer industry-related air cargo and 
mail between the Bav Area and the Far East. 



1 Cost Amount is the sum of (a) projected annual debt service incurred by the City attributable to the 
financing, design and construction of the Facility, and (b) the projected annual operating and 
maintenance charges for the Facility and related administrative charges incurred by the City. 

2 Market Value Amount is the rent a third party would be willing to pay to lease the Facility, based 
on (a) the size, location and age of the Facility, (b) services provided under this proposed lease, (c) the 
rental being obtained for new leases of space at the Airport, and (d) the quality of construction of this 
new Facility. 

Board of Supervisors 
Budget Analyst 

65 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Comments: 1. The Airport Commission adopted Resolution No. 98- 

0190 on August 4, 1998, recommending the award of the 
lease to the proposed lessee, NCA. 

2. Section 2A.173 of the City Administrative Code states 
"The Airport Commission shall have power to negotiate 
and execute leases of airport lands and space in airport 
buildings, without necessity for competitive bidding, to 
any person, firm, or corporation engaged in air 
transportation ... provided, that the original term of any 
such lease shall not exceed 50 years, nor shall any 
extension of such lease exceed a period of 50 years." 

3. According to Mr. Rhoades, the lease with NCA was 
recommended without soliciting competitive bids because 
the Airport has the authority to make such awards 
pursuant to the Administrative Code as cited in Comment 
No. 2 above, and because after a thorough analysis of 
airline needs and Airport resources, a careful selection of 
airlines was made to match the land and space available, 
and NCA was determined to be the most suitable lessee. 

Mr. Rhoades states that the Airport maintains a waiting 
list of airlines seeking land and space at the Airport. Mr. 
Rhoades further states that the North Field area of the 
Airport is designed purely for "freighters", or air 
transportation firms dealing only with the transport of 
cargo, and as such the North Field area is not desirable to 
the majority of airlines, which carry passengers in 
addition to cargo. The majority of airlines seeking land 
and space at the Airport desire the West Field Area as it 
is designed for both passengers and cargo. Mr. Rhoades 
states that only two airlines requested land and space in 
the North Field Area, NCA and Federal. Mr. Rhoades 
states that NCA was first on the waiting list of airlines 
requesting land and space in this area, and NCA was 
therefore awarded the lease, and Federal Express 
Corporation will be awarded a lease for adjacent land and 
space in the Facility next year, with Board of Supervisors 
approval. 

4. Ms. Artz states that approximately 18,000 square feet 
of Facility space will remain after both NCA and Federal 
occupy the Facility, and that full capital costs of the 
building would not be recovered if this space were to 

Board of Supervisors 
Budget Analyst 

66 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

remain vacant. Mr. Rhoades states that although only 
two airlines, NCA and Federal, have formally requested 
space in the Facility, two other airlines have expressed 
interest in the remaining 18,000 square feet of space, and 
these airlines are currently negotiating with the Airport 
the development of requests for this space. Mr. Rhoades 
states that there is sufficient demand for space in the 
North Field area to ensure that no space in the Facility 
will remain vacant and that capital costs of the building 
will be recovered. 

Recommendation: Approval of the proposed resolution is a policy decision for 

the Board of Supervisors. 



Board of Supervisors 
Budget Analyst 

67 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Item 15 - File 98-1876 

Department: Department of Human Resources (DHR) 

Item: Ordinance implementing the provisions of an 

amendment to the Memorandum of Understanding 
(MOU) between the Municipal Executives Association 
and the City and County of San Francisco pursuant to 
Article III.E.3, Subsections (B.l) and (E) of the MOU, 
to provide internal adjustments for the time period 
beginning July 1, 1998 through June 30, 2001. 

Description: In June of 1998, the Board of Supervisors approved an 

MOU with the Municipal Executives Association 
(MEA) for the three-year period from July 1, 1998 
through June 30, 2001. This MEA MOU contained 
provisions for an internal adjustment procedure, which 
authorized the City to allocate up to $325,000 to pay 
internal wage adjustments over the three-year life of 
the agreement. The standards established in the MEA 
MOU to grant such internal adjustments were as 
follows: (1) the basic wage for the classification is 
below the prevailing wage level in the relevant labor 
market as demonstrated by verifiable salary data, 
and/or (2) there is an ongoing and demonstrable 
recruitment and/or retention problem, and/or (3) 
traditional salary relationships, which continue to be 
justified, have been substantially altered, and/or (4) 
either the duties, responsibilities and/or minimum 
requirements for a classification have been altered 
significantly as reflected in either the class description 
or the most recent exam announcement. The MEA 
MOU granted internal adjustments to 16 
classifications covering 19 positions as of July 1, 1998. 
In addition, the MOU stated that the City and the 
MEA would attempt to reach agreement on internal 
adjustments for 39 other classifications identified in 
Appendix E of the MOU by September 30, 1998. 

The MEA MOU, previously approved by the Board of 
Supervisors, also contained a specific section 
addressing Airport Internal Adjustments. This section 
stated that the San Francisco International Airport 
was undertaking a classification/compensation study 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



£.a 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



and that the Director of Human Resources, upon 
recommendation of the Director of Airports, would be 
authorized to make internal adjustments, not to 
exceed one percent of the Airport's permanent salary 
budget for FY 1998-99, which the Controller's Office 
determined to be $92,692. This section also stated that 
the Airport's internal adjustments would be limited to 
those classifications that were specified in Appendix F 
oftheMOU. 

The proposed ordinance would implement the 
provisions of this previously approved MOU, to provide 
internal adjustments for 19 additional classifications, 
which represents 43 employees, for the three-year time 
period retroactive from July 1, 1998 through June 30, 
2001. 

Attachment 1, provided by DHR, identifies 18 of the 19 
classifications, and 42 of the 43 positions, that would 
receive the proposed internal adjustments in pay. 
Attachment 1 also contains (1) the percent of the 
proposed increase for each classification, (2) the 
maximum biweekly and annual pay rates for each 
classification before the internal adjustment, (3) the 
maximum biweekly and annual pay rates for each 
classification after the internal adjustment, and (4) the 
annualized three year cost of the proposed increase in 
pay. As shown in Attachment 1, the proposed increases 
for the internal adjustments range from a two percent 
increase for the 5131 Bureau Chief of the Department 
of Public Works to a 12.5 percent increase for the 5156 
Division Manager of Suburban Operations for the 
Public Utilities Commission. Attachment 1 also 
identifies a total salary cost for the third year of the 
MOU in the amount of $324,261 for the proposed 
internal adjustments, which includes a salary cost of 
$104,428 for the internal adjustments approved on 
July 1, 1998 and the salary cost of $219,833 for the 
internal adjustments currently being proposed. 

The one classification and position that is not included 
in Attachment 1 is 9278, the Director of Airports. The 
Director of Airports is proposed to receive an 18.7 
percent internal adjustment, which is the highest 
increase proposed. Such an increase would result in 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

69 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

the Director of Airports' annual salary increasing from 
the current $147,178 to $174,661, an annual salary 
increase of $27,483. 

Comments: 1. In addition to the proposed internal adjustment 

increases to salaries for these 19 classifications, which 
range from two percent to 18.7 percent, all 
classifications and employees in the MEA received a 
three percent increase in salaries, effective as of 
October 3, 1998. 

2. Attachment 2, provided by the Department of 
Human Resources, identifies the reasons for the 
internal adjustments for each of the 18 classifications, 
excluding the Director of Airports, based on the 
standards identified in the MEA MOU. Ms. B. J. Dix of 
the Department of Human Resources reports that the 
increase in the Director of Airports' salary was based 
on the Airport's classification/compensation study. 

3. As required by the MEA MOU, the proposed 
internal adjustment increases would be retroactive to 
July 1, 1998 for all of the proposed classifications, 
except for the Director of Airports, for which the 
proposed increase would be prospective. 

4. As shown in Attachment 3, the Controller's Office 
reports that the proposed ordinance would result in 
estimated incremental costs of approximately 
$270,800 for salary and fringe benefits for these 19 
classifications over the three-year period of this MOU. 
According to Ms. Peg Stevenson of the Controller's 
Office, these amounts were previously included in the 
City's projections and cost analysis 

5. According to Mr. John Madden of the Controller's 
Office, the Salary and Benefit Reserve of $6,257,587 
approved in the FY 1998-99 budget is the source of 
funds for the proposed General Fund supported salary 
and benefit expenses. Mr. Madden notes that increases 
in salaries and benefits of non-General Fund positions, 
such as the Director of the Airport, would be paid from 
non-General Fund revenues. Mr. Madden reports that 
the current balance in the Salary and Benefit Reserve 
account is $3,868,662. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

70 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



6. Appendix E and Appendix F of the MEA MOU, as 
previously approved by the Board of Supervisors, lists 
the specific classifications which are authorized to 
receive an internal adjustment. These appendices do 
not provide authorization for three classifications, (1) 
1682, Controller, (2) 5156, Division Manager of 
Suburban Operations, and (3) 9278 Director of 
Airports to receive internal adjustments during the 
three-year MOU period. However, this proposed 
ordinance recommends implementing internal 
adjustments of 11 percent for the Controller, 12.5 
percent for the Division Manager of Suburban 
Operations and 18.7 percent for the Director of 
Airports. The Budget Analyst notes that these three 
positions would receive the highest percent of internal 
adjustments of all the adjustments proposed. However, 
as previously noted, these three positions were not 
authorized to receive any internal adjustments 
pursuant to this subject MOU, which was previously 
approved by the Board of Supervisors. According to 
Mr. Geoff Rothman of the Department of Human 
Resources, these three classifications were omitted 
from the appendices on the previously approved MEA 
MOU, due to clerical errors. Mr. Rothman reports that 
the MEA and the City have mutually agreed to provide 
the proposed internal adjustments for these three 
classifications. 

7. Mr. Ted Lakey and Ms. Michele Modena of the City 
Attorneys Office report that since these three 
positions were not included in Appendix E or Appendix 
F of the MEA MOU, which listed those positions 
authorized to receive internal adjustments, the 
proposed internal adjustments for these three 
positions cannot be approved. According to Mr. Lakey 
and Ms. Modena, in order to approve such internal 
adjustments, the previously approved MEA MOU 
would need to be amended to include these three 
positions in the appropriate appendices. Ms. Modena 
notes that an amended version of the previous MEA 
MOU h> I mbmitted to the Board of Supervisors, 
to incluuc uiese three positions on the appropriate 
appendices. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

71 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Recommendation: Given the opinion of the City Attorney's Office, the 
Board of Supervisors can either (1) approve the 
remaining 16 classifications that are proposed to 
receive an internal adjustment, and not approve the 
three classifications that were not included in the 
appendices; (2) approve the remaining 16 
classifications that are proposed to receive an internal 
adjustment and request that legislation be prepared to 
amend the previous MOU to include the three 
classifications that were omitted; or (3) continue to the 
Call of the Chair the proposed legislation, pending 
approval of amended legislation to include these three 
omitted classifications. It should be noted that the 
remaining 16 classifications internal adjustments 
would be retroactive to July 1, 1998. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

72 



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NOO 13 ' 33 17:10 FR 



City and County of San Francisco 



TO: 



THROUGH: 



FROM: 



RE: 



415 557 4913 TO BUDGET ANALYST P. 02/02 

Attachment 2 

Department of Human Resources 




ANDREA R. GOURDWE 
HUMAN RESOURCES DIRECTOR 



MEMORANDUM 



Deborah Newrrian 
Budget Analyst 
Board of Supe 

Geoffrey 1_! Rofchman 
Director of Employee 
Employee Relations I 

Janet Bosnichjseijas /1a>>r*/£y£ -^tf"/U 

Compensation! Manager (/* *~ J *v\ J 3 yf<=> 
Compensation- Program/ Employee Relations Division 

MEA internal Adjustments Submission Standards 




The MEA Internal Adjustments are based on the standards set forth below; 

I 1 

1 . The basic wage for the classification is below the prevailing wage level in the relevant labor marke: as 
demonstrated by verifiable salary data; and /or 

2. There is an ongoing and demonstrable recruitment and/or retention problem; and/or 

3. Traditional salary relationships, which continue to be justified, have been substantially altered; anc/or 

4. Either the duties, responsibilities, and/or minimum requirements for a classification have been arte- ad 
significantly as reflected in either the class descnption or the most recent exam announcement. 



Class Title 

1 120 Director of Animal Care 

1 125 Division Manager, Registrar of Voters 

1 132 County Clerk/Recorder 

1682 Controller 

1843 Exec Dir., SE Commuqity Facility Commission 

2925 Chief, Medical Soda) Services 

4349 Director of Real Es(ate| Tax Collector 

4368 Director, Bureau of j Delinquent Revenue 

5104 Public Bldgs MaintJ & Repair Superintendent 

5131 Bureau Chief, DPW 

5136 Superintendent of Street and Sewer Repair 

5156 Division Manager, Suburban Operations 

5162 Water Purification Division Manager 

5170 Street Cleaning & Planting Superintendent 

5212 Principal Engineer 

9357 Maritime Operations Manager 

9382 Govt & Public Affairs Manager, Port 

9386 Senior Property Manager, Port 



Standard(s) Used 

1 

1,2.4 

4 

1 

3,4 

1.4 

1,3,4 

1,3,4 

3 

3 

3 

1,4 

1,4 

3 

3 

1,3,4 

1.4 

1,2,3,4 



I Googh Street • San Francisco. CA 84103-1230 

74 



** TOTAL PAGE. 002 ** 




■ CITY AND COUNTY OF SAN FRANCISCO OFFICE OF THE CONTROLL 

Attachment 3 Edward Hamn: 

Conor 

John W. Mac 
Chief AstJStamt Contr 



November 19, 1998 

Ms. Gloria L. Young, Clerk of the Board 
Board of Supervisors 
401 Van Ness Avenue 
San Francisco, CA 94102 

RE: Municipal Executives Association MOU, File No. 98-1 876 

Dear Mr. Taylor. 

In accordance with Ordinance 92-94, I am submitting a cost analysis of an amendment to the 
Memorandum of Understanding between the City and County of San Francisco and the Municipal 
Exeoitives Association. The agreement covers the period Jury 1, 1998 through June 30, 2001, and affects 
approximately 43 employees with a salary base of approximately S3. 9 million. 

Based on our analysis, the agreement will result in estimated incremental costs of approximately $259,000 
in FY 1998-99, $5,800 in FY 1999-00, and S6,000 in FY 2000-01. The agreement will result in a cost 
increase above the base salary amount of approximately 6.48% in FY' 1 998-99. 

Please note that the total dollar amount for the internal adjustments implemented by this amendment was 
provided for in the Municipal Executives Association MOU as it was approved by the Board of 
Supervisors in June of this year. The amounts listed above were contained in the cost analysis provided bv 
the Controller at that time Getter of June 5, 1998), and have been anticipated in our projections. 

If you have any additional questions or concerns please contact John Madden at 55-V7500. 



Sincerely, 



HSdward M. rLirrington 
Controller 



Viclti Rambo, ERD 

Harvey Rose, Budget Analyst 



413-55A--500 



$75 Scnrenoa Street • Room ZJ5 - S*a Frucexa CA 9*103-0910 

75 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Item 16 -File 98-1874 

Department: 

Item: 



Juvenile Probation 

Ordinance appropriating $607,007 of Federal Temporary 
Assistance to Needy Families for temporary salaries, 
training, professional services, materials and supplies, 
facilities maintenance and repairs, equipment and 
services of other departments for the Juvenile Probation 
Department's Log Cabin Ranch, and placing $126,845 on 
reserve. 



Amount: 
Source of Funds: 



Description: 



$607,007 



$184,548 



422.459 
$607,007 



Federal Temporary Assistance to Needy 

Families - Ranch (TANF) funds, FY 

1997-98 

State AB 1483 grant funds. FY 1996-97 

Total 



The Juvenile Probation Department's Log Cabin Ranch, 
located approximate!}' 60 miles south of the City near the 
town of La Honda, is a detention facility for male 
juveniles between the ages of 14 to 18. Log Cabin Ranch 
currently serves an average of 45 juveniles who are 
referred to the facility through the court system. The 
facility has a maximum capacity of 84 male juveniles. 

This proposed supplemental appropriation request in the 
total amount of $607,007, includes $184,548 in new TANF 
Ranch funds and $422,459 in remaining FY 1996-97 State 
AB 1483 funds. Effective FY' 1997-98, all State AB 1483 
funds were discontinued and are replaced by TANF Ranch 
funds. TANF Ranch funds are allocated to the City 
through the State Department of Social Services. Both of 
these funding sources are restricted to funding 
expenditures at the Juvenile Probation Department's Log 
Cabin Ranch only. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

76 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Budget: The budget for the requested supplemental appropriation 

of $606,007 is as follows: 

Temporary Salaries $25,000 

The Department is requesting one 1426 Senior Clerk 
Typist to work full time for the period December 26, 1998 
through June 30, 1998, approximately 1,120 hours, at a 
Step 1 salary of approximately $15.88 per hour, for a total 
of $17,786. This full-time temporary worker would 
provide support to the Log Cabin Director managing the 
facility on a day-to-day basis. The Director does not 
currently have dedicated clerical staff and according to 
Mr. Lopatin, as a result, the Director diverts time that 
would otherwise be focused on programs, staff 
development, planning, and resolving problems. 
Additionally, a second 1426 Senior Clerk Typist is 
requested to work 454 hours, for a total of $7,214 
(rounded) to assist the Director in preparing 
administrative files as required for a full accreditation 
review of the division by the American Correctional 
Association in 1999. 

Professional Services - Continuing 1 $65,598 

Conflict Mediation (formerly Omega) $8,000 

Provides mediation for detained juveniles who come from 
various communities and have conflicts with each other. 
One instructor x 4 hours per week x 50 weeks at $35 per 
hour = $7,000 plus mileage reimbursement at $.0.20 per 
mile x 100 miles per week x 50 weeks = $1,000. 

According to Mr. Lopatin, Conflict Mediation contract 
services have been provided since July 1, 1998 and funded 
with monies from the Department's approved FY 1998-99 
budget for Professional and Specialized Services account. 
However, such monies had not been appropriated for 
Conflict Mediation services. Approval of this subject 
supplemental appropriation would provide the funds to 
reimburse the Departments budget for such payments 
and to fund the contract through June 30, 1999. 



Continuing contracts have a term of July 1, 1998 through June 30. 1999. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

77 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Carpentry $57,598 

Teaches residents basic carpentry while repairing the 
lobby walls, dry rot around the deck, steps and doors, and 
painting the interior and exterior of the Log Cabin. Two 
instructors x 10 hours per week x 50 weeks x $35 per hour 
= $35,000. Mileage reimbursement for two instructors at 
$0.20 per mile x 500 miles per week x 50 weeks = $5,000. 
Materials and supplies totaling $17,508 ($10,098 for 
lumber, $3,500 doors and windows, $2,800 flooring, 
$1,200 nails and hardware). 

According to Mr. Lopatin, contracted instructors have 
been providing the Carpentry Program since July 1, 1998 
and the Department has paid the instructors with 
carryover funds and monies approved in the FY 1998-99 
budget for Professional and Specialized Services. 
However, such funds had not been appropriated for the 
Carpentry contractors. Approval of this subject 
supplemental appropriation would provide the 
Department with the funds needed to reimburse the 
Department's budget for such payments and to fund the 
Carpentry Program contract through June 30, 1999. 

Professional Services - New 2 $293,095 

Aftercare Services $99,000 

This program would provide Log Cabin residents with a 
spectrum of services to ease their return to their 
communities including (1) family counseling, (2) 
assistance in staying in school, (3) job preparedness, (4) 
health and mental health services, (5) mentoring and 
other related services which will assist the youth and his 
family. Aftercare Services are provided by the San 
Francisco League of Urban Gardeners. One instructor x 
32 hours per week x 50 weeks at $20 per hour = $32,000; 
one instructor 20 hours per week x 50 weeks at $17 per 
hour = $17,000; benefits for both instructors at 21% = 
$10,290, mileage reimbursement at $0.20 per mile x 150 
mils per week x 50 weeks = $1,500; materials and 



2 New Program contracts are for a 12 month period (50 weeks) beginning upon approval of this 
supplemental appropriation, expected to be January 1, 1999 through December 31, 1999, except for 
the Barber Training and the GED Tutorial programs, which are just 36 weeks and will commence 
upon approval of this supplemental appropriation. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

78 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



supplies at $2,000; plus Youth stipends at $7 per hour 
plus fringe benefits = $36,210. 

Barber Training $12,300 

The Barber Training course will teach interested 
residents hair cutting and styling techniques that will 
prepare them to take the State of California Barber's 
examination. One instructor for 36 weeks for 8 hours per 
week at $35 per hour = $10,080 plus equipment costs of 
$1,500 plus mileage reimbursement at $.0.20 per mile x 
100 miles per week x 36 weeks = $720. 

Gang Mediation $8,000 

To provide mediation for gang members and to provide 
juveniles with alternatives to gang life. One instructor for 
50 weeks for 4 hours per week at $35 per hour = $7,000 
plus mileage reimbursement at $.0.20 per mile x 100 
miles per week x 50 weeks = $1,000. 

General Equivalency Diploma Tutorial $15,295 
To provide tutoring and study materials to juveniles who 
qualify to take the GED test. One GED instructor for 36 
weeks for 8 hours per week at $35 per week = $10,080 
plus testing fees for 20 juveniles and administrative costs 
at $3,215 plus study materials for 20 juveniles at $2,000. 

Health Education $4,500 

Teaches residents important components of sexually 
transmitted diseases. prevention. treatment and 
lifestyles, as well as hygiene and nutrition for health. One 
instructor x 2 hours per week x 50 weeks at $35 per hour 
= $3,500 plus mileage reimbursement at $.0.20 per mile x 
100 miles per week x 50 weeks = $1,000. 

Landscaping $5,950 

Teaches basic skills in plant growth, landscaping and 
land beautification for residential and commercial 
projects through planting the entry road to the Log Cabin, 
around various ranch buildings and in the greenhouse. 
Instruction provided at no cost by the San Francisco 
League of Urban Gardeners. Materials and supplies total 
$5,950. 

Learning Disability Tutorial $18,000 

To provide specialized tutoring for individual juveniles 
identified with academic learning disabilities. One 
Credential Learning Specialist instructor for 50 weeks for 
8 hours per week at $35 per hour = $14,000 plus mileage 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

79 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



reimbursement at $.0.20 per mile x 400 miles per week x 
50 weeks = $4,000. 

Outward Bound $76,450 

To teach an understanding of the environment and give 
delinquent juveniles opportunity to re-direct physical, 
social and emotional energies into exercises that develop 
self discipline, confidence, moral reasoning and 
leadership. Two instructors x 50 weeks x 4 hours per 
week at $35 per hour = $14,000, materials, equipment 
and installation = $53,090, staff training = $8,360, and 
mileage reimbursement at $.0.20 per mile x 100 miles per 
week x 50 weeks = $1,000. 

Photography $40,000 

Teaches residents the basic skills necessary for entry level 
position in the photography industry. Two instructors x 
16 hours per week x 50 weeks x $35 per hour = $28,000, 
plus materials and film at $11,000 and mileage 
reimbursement at $.0.20 per mile x 100 miles per week x 
50 weeks = $1,000. 

Social Skills $4,500 

Teaches residents independent living skills and builds self 
esteem. One instructor x 2 hours per week x 50 weeks at 
$35 per hour = $3,500 plus mileage reimbursement at 
$.0.20 per mile x 100 miles per week x 50 weeks = $1,000. 

Evaluation of Program Services $5,600 

Currently, there is no internal method at the Department 
to determine the effectiveness of programs and services at 
Log Cabin Ranch. An evaluation by the Council of 
Juvenile Correctional Administrators would determine if 
the Ranch programs and services are effective for treating 
and reforming juvenile delinquents. Flat fee. 

Follow up Evaluation of Log Cabin Youth $3,500 
A re-evaluation of the juveniles one year after they have 
been released from the Ranch programs to determine self 
sufficiency and sustainability, to be performed by the 
Council of Juvenile Correctional Administrators. Flat fee. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Training $18.800 

Training for Counselors and Managers $9,800 
To provide specialized training for all professional Log 
Cabin staff which would be focused on improving staff 
ability to address the needs and problems related to 
juvenile delinquency: 



Conflict Resolution 


$750 


Anger Management 


800 


Counseling Techniques 


1,200 


Managing Juvenile Facilities 


600 


Train the Trainer 


3,000 


Case Mgmt Services 


2,500 


Report Writing 


500 


Recreational/Therapeutic 




Activities for Juveniles 


450 



$9,800 

ACA Training $9,000 

The American Correctional Association (ACA) would 
provide a team of Correctional professionals to the Log 
Cabin Ranch to help staff develop the tools and strategies 
to meet the ACA requirements and standards. $9,000 flat 
fee. See Comment No. 5. 



Materials and Supplies $19,158 

Tables and Chairs $ 13.690 

Additional furniture is needed to seat juveniles and staff 
during meals, recreational activities, counseling sessions 
and group session as well as for visitors during special 
events. Office furniture is also needed for clerical staff, 
managers, and administrators. 
10 Tables at $670 each $6,700 

10 Desk chairs at $299 each $2,990 
50 Stacking chairs at $80 each$4,000 

Miscellaneous materials and supplies $5,468 

Fuel, batteries, food and other miscellaneous items for use 
in case of emergency, such as winter storms, when other 
supplies are exhausted and ordinary purchasing 
procedures are not appropriate. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

81 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Facilities Maintenance and Repairs $75,490 

Tree Removal $16,300 

To remove six trees and the roots which have caused 

major damage to the playground and dormitory walkway 

and created a severe trip hazard. Cited by the 

Department of Public Health (DPH) for this safety 

violation. 

Resurface Playground $17,950 

Mr. Lopatin reports that the Log Cabin playground, 
which is required by State law, is severely damaged with 
cracks, holes, and uneven surface. The Department 
requests funding to resurface the playground in order to 
prevent injuries. 

Resurface Parking Lot $14,540 

Mr. Lopatin reports that the Log Cabin parking lot 
sustained severe damage during the heavy winter rains in 
FY 1997-98 and as a result, the parking lot has potholes 
that have damaged vehicles. 

Fire Alarm System $18,700 

The Department requests $16,200 to connect the Fire 
Alarm System to the local Fire Department and $2,500 to 
upgrade the fire announcing system in order to be 
compliant with local, county and State Fire Codes. 

Shower Partitions $8,000 

The Department requests $6,500 for the purchase of 

Privacy Stalls for the shower room and $1,500 for the 

installation of such stalls in order to provide privacy 

during shower times while still allowing for staff 

supervision. 

Equipment $81,495 

Two 15-passenger vans $52,000 

Currently, the Ranch has three passenger vans with a 
total capacity of 34 passengers. The Department requests 
funding for two additional vans in order to meet the State 
Board of Corrections mandate that the Log Cabin Ranch 
have a sufficient number of vehicles to safely evacuate 
juveniles in a disaster situation. The average number of 
juveniles at Log Cabin is 45. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

82 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



One four-wheel drive vehicle $18,000 

The Department requests a four-wheel drive vehicle in 
order to navigate the 650 acres of mountainous terrain on 
which the Ranch is located. Staff need to move supplies 
and heavy equipment as well as monitor the property for 
security purposes. Currently, Log Cabin staff share a pick 
up truck with the Youth Guidance Center which is 
available two days a week and is unable to traverse all 
the property areas. 

Dishwasher $11,495 

The dishwasher at the Ranch is unable to provide water 
at a temperature of at least 180 degrees Fahrenheit for 
the last two years and the Ranch has been cited each of 
the last two annual inspections by the Department of 
Public Health for failure to sterilize utensils, dishes, pots 
and pans. The Department reports vendor quotes of 
$9,995 for dishwasher and $1,500 for installation. 



Services of Other Departments $28.371 

The Department requests the service of a 2305 
Psychiatric Technician from the Department of Public 
Health, Mental Health Services, working approximately 
half-time (0.56 FTE) providing medical and psychiatric 
counseling to juveniles evenings, weekends, and holidays 
when regularly assigned Public Health Staff is not 
available. 



Comments: 1. According to Mr. Ed Lopatin of the Juvenile Probation 

Department, the $422,459 in State AB 1483 funds was 
not included in the Department's FY 1998-99 budget, as 
in years past. Mr. Lopatin reports that since the inception 
of State AB 1483 funds, a supplemental appropriation has 
been used to appropriate the subject grant funds. 

2. Mr. Lopatin reports that the $184,548 in TANF Ranch 
funds represents approximately half the total amount of 
TANF Ranch funds to be allocated by the State to the Log 
Cabin Ranch. The remaining balance is to be allocated 
through a supplemental appropriation, expected to be 
presented for consideration to the Board of Supervisors in 
the Spring of FY 1998-99. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

83 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



3. This proposed ordinance would reserve $126,845 of the 
5184,548 in TANF funds, pending selection of contractors 
and submission of contract expenditure details. However, 
according to Mr. Lopatin, since this legislation was 
drafted, the Juvenile Probation Department has identified 
contractors and expenditure details for all the new and 
continuing contractors, except the instructors for Social 
Skills and Health Education, totaling $9,000, as shown in 
Attachment 1, provided by Mr. Lopatin. However, Mr. 
Johnny Miller, Director of the Log Cabin, stated that he 
expects to identify instructors for the Social Skills and 
Health Education programs in December and to start the 
programs in January as planned. As such, this proposed 
legislation should be amended to delete reference to the 
reserve of $126,845. 

Mr. Lopatin reports that all of the contractors were 
selected on a sole-source basis due to the unique 
requirements and special expertise required to serve the 
Log Cabin needs. 

4. According to Mr. Lopatin, the $9,100 ($5,600 plus 
$3,500) requested for Program Evaluation and Follow up 
Evaluation of Log Cabin Youth by the Council of Juvenile 
Correctional Administrators (CJCA) would compliment 
the requested $9,000 in ACA Training. The 
comprehensive analysis and objective recommendations 
that would result from such consultant services would 
enable Log Cabin staff to better prepare and meet the 
standards for an accreditation review, as well as improve 
the overall service delivery to juveniles at Log Cabin 
Ranch, according to Mr. Lopatin. 

5. The proposed budget includes $25,000 for Temporary 
Salaries. The Budget Analyst has reviewed source 
documentation provided as a basis for such expenditure. 
As noted above, the $25,000 would fund one 1426 Senior 
Clerk Typist to work full time for the period December 26, 
1998 through June 30, 1998, approximately 1,120 hours, 
at a Step 1 salary of approximately $15.88 per hour, for a 
total of $17,786, and a second 1426 Senior Clerk Typist to 
work 454 hours, for a total of $7,214 (rounded). The 
Department's FY 1998-99 Temporary Salaries budget for 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

84 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Log Cabin Ranch previously approved by the Board of 
Supervisors is $126,387. Mr. Lopatin reports that such 
Temporary Salaries are intended for as-needed counselors 
and engineers to perform repair work at the ranch, and 
that the 1426 Senior Clerk Typists are needed to provide 
administrative support for the Ranch's effort to achieve 
accreditation in Spring of FY 1998-99. 

Based on the lack of adequate justification for $25,000 in 
a Temporary' Salaries, the Budget Analyst has concluded 
that one 1426 Senior Clerk Typist working full time 
during the period January 1, 1998 through June 30, 1999 
(or 1044 hours) is sufficient to meet the Director's 
administrative needs. We therefore recommend that the 
budget for Temporary Salaries be reduced from $25,000 to 
$16,579, at a savings of $8,421. By reducing this request, 
the $8,421 in TANF Ranch funds could be appropriated by 
the Juvenile Probation Department for other needed 
eligible Log Cabin expenditures, which may be requested 
by the Juvenile Probation Department. 

6. This proposed request includes $52,000 in the 
Equipment budget for two, 15-passenger vans, based on a 
reported State requirement that the Ranch have sufficient 
van capacity to evacuate all Ranch juveniles. As noted 
above, the average occupancy at Log Cabin Ranch is 45 
juveniles. Currently, the Ranch has three passenger vans 
with a total capacity of 34 passengers. Therefore, if the 
Ranch had one additional 15-passenger van. the total van 
capacity would be 49 passengers, which would provide 
sufficient capacity to evacuate all juveniles. The 
Department was unable to provide the Budget Analyst 
with adequate justification for a second passenger van. As 
such, we recommend reducing the Equipment budget by 
$26,000, from $52,000 to $26,000. Such funds could be 
appropriated for other needed eligible expenditures for 
Log Cabin Ranch, which may be requested by the 
Juvenile Probation Department. 

7. As noted in the Budget Section above under 
Professional Services - Continuing, the Department 
incurred an obligation prior to obtaining Board of 
Supervisors approval to fund the Conflict Mediation 
Program and the contracted vendors for the Carpentry 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

85 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Program. As explained in Attachment 2, provided by Ms. 
Sandy Brown-Richardson of the Juvenile Probation 
Department, obligations in the total amount of $24,925 
were incurred prior to this supplemental appropriation 
request. General Fund monies in the Department's 
budget were used for such expenditures of $24,925 and 
this subject request for grant funds would now be used to 
reimburse the Department. 

Recommendations: 1. In accordance with Comment No. 3, amend the 

proposed ordinance to delete reference to placing $126,845 
on reserve. 

2. In accordance with Comment No. 5, amend the 
proposed ordinance to reduce the request for Temporary 
Salaries by $8,421, from $25,000 to $16,579. 

3. In accordance with Comment No. 6, amend the 
proposed ordinance to reduce the request for Equipment 
by $26,000, from $52,000 to $26,000. 

The total request should therefore be reduced by $34,421 
($8,421 plus $26,000) from $607,007 to $572,586. 

4. Except for the $24,925 in expenditures incurred prior 
to obtaining Board of Supervisors approval, as cited in 
Comment No. 7, which we consider to be a policy matter 
for the Board of Supervisors, approve the proposed 
ordinance, as amended. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

86 



Attachment 1 



FY 1998-99 AB 1483 Proposal 



Programs 


Amount 


Aftercare 


$99,000 


Carpentry 


57,598 


Landscaping 


5,950 


Photography 


40,000 


Conflict Mediation 


8,000 


Social Skills 


4,500 


Health Education 


4,500 


Outward Bound 


76,450 


Gang Mediation 


8,000 


GED Tutorial 


15,295 



Learning Disability Tutor 



18.000 



Barber Styling 12,300 

Evaluation of Program Services 5.600 

Evaluation of Log Cabin Youth 3,500 



Instructor or Organization Name 

San Francisco League of Urban 
Gardeners (SLUG) 

Joe Herbert and Robert Patrick, 
Carpenters by Trade 

Marco Franciosa/SLUG 

Karen Hall/Teacher, San Francisco 
Unified School District and Yicki 
Rega/Youth for Services 

Jack Jacqua/Omega Boys Club 

Instructor not yet identified 

Instructor not yet identified 

Vision Youthz 

Jeff Leiken/National Teacher and 
Educator 

Monica Gorman/Teacher, San 
Francisco Unified School District 

Karen Hall/Teacher, San Francisco 
Unified School District 

Bayview Barber College 

Council of Juvenile Correction 
Administrators 

Council of Juvenile Correction 
Administrators 



Total Professional Services $358,693 



87 



11-23-1998 12:42 



4157537566 



JUV. PR03. BUS. OFC. 



Attachment 2 



City and County of San Francisco 
Juvenile Probation Department 



JESSE E. WILLIAMS, JR. 
CHIEF PROBATION Of FICER 



To: Taylor Emerson, Budget Analyst Office 

From: Sandy Brown-Richardson, Tuvenile Probation Department 

Date: November 30, 1998 

Re: Supplemental Appropriation Request - AB 1483 and TANF Ranch funds 

This memo is being written in response to your request for information regarding 
the status of the on-going contract program services at Log Cabin Ranch. For FY 
1997/98, Log Cabin Ranch paid for, through AB 1483 funds, the following contract 
services: (1) Aftercare Program, (2) Carpentry Program, (3) Landscaping Program, (4) 
Photography Program, (5) Conflict Mediation Program (Omega Program), (6) Social 
Skills Program and (7) Health Education Program. 

Of the seven programs noted above, only three have continued to provide services 
in the current fiscal year. The three programs include the Aftercare Program, the 
Carpentry Program, and the Conflict Mediation Program (Omega Program). The 
Aftercare Program's contract, in the amount of 599,000, is for the period January 1, 1998 
to December 31, 1998. The Carpentry and Conflict Mediation Program contracts are for 
the period, July 1, 1998 to June 30, 1999. The department has incurred expenses against 
these two contract services. A total of $11,315 has been paid to Mr. Robert G. Patrick 
through October, 1998 and a total of $10,730 has been paid to Mr. Albert J. Herbert 
through October, 1998 for an overall total of $22,045 for carpentry services. Additionally, 
a total of $2,880 has been expended for conflict mediation services through October, 
1998, bringing the overall amount expended thus far for these two program services to 
$24,925. The $24,925 has been charged to general fund monies under Log Cabin Ranch's 
Professional and Specialized Services account. The $24,925 in general fund monies will 
be reimbursed by the AB 1483/TANF Ranch funds that are the Bource of funds for this 
request. 

If you have in any further questions or desire further information regarding this 
subject matter, please don't hesitate to contact me. Thank you for your assistance in this 
matter. 



(415)753-7*00 



375 Woodtld* Av»nu« 



San Franei»co,CA 94127 



88 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Items 17 and 18- Files 98-1875 and 98-1882 



Department: 
Items: 



Amount: 
Source of Funds: 



Description: 



Juvenile Probation 

Item 17, File 98-1875 : Ordinance appropriating 

$412,604 and rescinding $142,853 from Overhead budget 
and rescinding $137,045 from Professional Services to 
provide funds for Salaries, Fringe Benefits, Equipment, 
Services of Other Departments and to create one new- 
position for the Juvenile Probation Department. 

Item 18, File 98-1882 : Ordinance amending Ordinance 
No. 243-98 (Annual Salary Ordinance FY 1998-99) 
reflecting the creation of one position for the Juvenile 
Probation Department. 

$412,604 



$132,706 



142,853 



137,045 



Federal Temporary Assistance to Needy 
Families (TANF) funds 

Previously appropriated funds for Overhead 
in the Juvenile Probation Department's FY 
1998-99 budget 

Previously appropriated funds for 
Professional and Specialized Services in 
the Juvenile Probation Department's FY 
1998-99 budget 

$412,604 Total 

Ms. Sandy Brown-Richardson of the Juvenile Probation 
Department reports that under the Federal 
Comprehensive Youth Services Act, the Juvenile 
Probation Department has been allocated, through the 
State Department of Social Services, $3,232,706 in 
Federal TANF funds for FY' 1998-99, an increase of 
$132,706 over the previously approved amount of 
$3,100,000 in the Juvenile Probation Department's FY' 
1998-99 budget. 

This proposed supplemental appropriation ordinance, File 
98-1875, would appropriate $132,706 in new, additional 
TANF funds for FY 1998-99, and would inappropriate 
$142,853 in previously appropriated monies for Overhead 
and $137,045 in previously appropriated monies for 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Professional and Specialized Services in the FY 1998-99 
budget for the Juvenile Probation Department, for a total 
supplemental appropriation in the amount of $412,604. 

According to Ms. Brown-Richardson, the $142,853 in 
previously appropriated monies for Overhead, which was 
to have been used for general administrative overhead, is 
no longer needed for those purposes. The Department's 
previously appropriated budget included $466,124 for 
Overhead, or 15 percent of the $3,100,000 in TANF funds. 
Ms. Brown-Richardson reports that subsequent to the FY" 
1998-99 budget process, the Juvenile Justice 
Coordinating Council (Council) and the Juvenile 
Probation Department refined the comprehensive plan for 
the TANF funds, and reduced the Overhead budget to 
$323,271, or 10 percent of the proposed $3,232,706 in 
TANF funding, in order to allocate as much money as 
possible to direct services. 

Ms. Brown-Richardson reports that $137,045 in 
previously appropriated funds in the Professional and 
Specialized Services budget, which was to have been used 
to fund contracts with Beacon Centers, which are 
nonprofit agencies that provide a range of social services 
to at-risk youth, are no longer needed because the 
contracts with the Beacon Centers will now be 
administered through the Mayor's Office of Children 
Youth and Families. As such, this legislation would 
reappropriate this $137,045 for workorder funds to 
Services of Other Departments - Mayor's Office of 
Children, Youth and Families. 

The proposed ordinance, File 98-1882, would amend the 
FY 1998-99 Annual Salary Ordinance by creating one 
new Special Assistant XIII position to serve as 
Community Coordinator as follows: 

Biweekly Biweekly 

Annual Salary Annual Salary 

FTE Class Title Step 1 Step 5 

1 1372 Special Assistant XIII* $2,395-$62,510 $2,910-$75,951 

* See Comment No. 2 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

90 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

The annual cost of the requested new Special Assistant 
XIII position would range from $80,013 at Step 1, 
including $62,510 in Salary and $17,503 in Fringe 
Benefits to $97,217 at Step 5, including $75,951 in Salary 
and $21,266 in Fringe Benefits. 

Budget: The requested budget of $412,604 for the period July 1, 

1998 through June 30, 1999 is as follows (see Comment 
No. 4): 

$44,955 Permanent Salaries 

12,527 Fringe Benefits 

25,122 Computer Equipment 

300,000 Services of Other Depts - Mayor's Office of 
Children, Youth and Families 
6,000 Services of Other Depts - Mayor's 

Youthworks 
24,000 Services of Other Depts - Adult Probation 

$412,604 Total 

Attachment 1, provided by Ms. Brown-Richardson, 
contains the budget details for this $412,604 request. 

Comments: 1. File 98-1875 would appropriate $44,955 in Permanent 

Salaries and $12,527 in fringe benefits, assuming a start 
date for the proposed Special Assistant XIII of October 1, 
1998. However, Ms. Brown-Richardson reports that no 
candidate has been identified yet and the earliest date 
that an appointment could be made is January 1, 1999. 
Therefore, funding for salaries should be reduced by 
$14,985, from $44,955 to $29,970, and funding for Fringe 
Benefits should be reduced by $4,176, from $12,527 to 
$8,351, for a total reduction of $19,161. 

2. This proposed ordinance would appropriate $25,122 to 
the purchase of computer equipment, including six 
personal computers at a cost of $2,755 each. Based on 
support information provided by the Department, the cost 
of each of the requested computers should be reduced by 
$655, from $2,755 to $2,100, for a total reduction to the 
Equipment budget of $3,930, from $25,122 to $21,192. 

3. File 98-1875 would amend the Annual Salary 
Ordinance to create a new Special Assistant XVIII in the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

91 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Juvenile Probation Department, which is in error. The 
correct classification for the proposed new position is 
Special Assistant XIII. As such, the legislation should be 
amended to show the correct classification of Special 
Assistant XIII for the requested new position. 

4. The requested new Special Assistant XIII position, 
which Ms. Brown-Richardson reports is needed to 
coordinate the expanded number of CBO contracts, should 
be designated a Limited Tenure position. As a Limited 
Tenure position, the Special Assistant XIII position would 
be contingent on the Juvenile Probation Department 
continuing to receive TANF grant monies in order to fund 
the position. 

5. Attachment 2, provided by Ms. Brown-Richardson, 
describes in detail the responsibilities of the proposed new 
position, which will be assigned to the Department's 
Community Services Division. According to the Juvenile 
Probation Department, this position will primarily serve 
as liaison/coordinator between the Department, 
community representatives, families, private/ 
governmental agencies, and the community-based 
organizations serving as contractors. According to Mb. 
Brown-Richardson, currently the Director of Community 
Services provides such services on a limited basis. Ms. 
Brown-Richardson reports that this proposed new position 
is needed now because the number of CBO contracts will 
at least double in FY 1998-99, due to increased TANF 
funding, and a full time staff member is needed to 
effectively coordinate the expanded contract services. 



Recommendations: 1. In accordance with Comment No. 1, amend the 
ordinance (File 98-1875) to reduce the request for 
Permanent Salaries by $14,985, from $44,955 to 29.970, 
and reduce the request for Fringe Benefits by $4,176, 
from $12,527 to $8,351. The reduction should be made 
from the $142,853 in Overhead funds, which are General 
Fund monies. 

2. In accordance with Comment No. 2 above, amend the 
ordinance (File 98-1875) to reduce the request for 
Equipment by $3,930, from $25,122 to $21,192. The 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

92 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



reduction should be made from the $142,853 in Overhead 
funds, which are General Fund monies. 

Therefore, the total request of $412,604 (File 98-1875) 
should be reduced by $23,091 to $389,513. 

3. In accordance with Comment No. 3 above, amend the 
proposed amendment to the Annual Salary Ordinance, 
(File 98-1882), to reflect the correct classification for the 
proposed new position as a Special Assistant XIII, and not 
a Special Assistant XVIII. 

4. In accordance with Comment No. 4, amend the 
ordinance (File 98-1882) to make the requested new 
position a Limited Tenure position. 

5. Approve the proposed ordinance as amended (File 98- 
1875), and approve the proposed amendment to the 
Annual Salary Appropriation, as amended (File 98-1882). 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

93 



11-24-1998 15:30 



4157537566 



JUV. PROB. BUS. OFC. 



P. 02 

Attachment 1 
Page 1 of 2 



PROPOSED SUPPLEMENTAL APPROPRIATION REQUEST 
Temporary Assistance to Needy Families (TANF) Fund* 



SOURCE OF FUNDS 
TANF Fundi 



Current Budgeted 
Amount 



Permanent Salaries 
1 - Special Assistant XIII (9 months) 
(Community Coordinator) 
Fringe Benefits 

Subtotal - Special Assistant 

9 - Probation Officer 
Fringe Benefits 
Subtotal- Probation Officer 

Overhead 

Professional and Spec. Serves 

Equipment 

6 - Personal Computers @ $2,755 ea. 
6 - Monitors @ $350 ea. 
4- Printers @ 1,623 ea. 

Subtotal - Equipment 



Services of Other Departments 
Mayor's Office of Children Youth 
and their Families (MOCYF) - Beacon 
Centers (provide support services such as 
counseling and referral to youth and their 
families) - funds to be used for start-up 
costs for three new centers - $100,000 ea. 

MOCYF - Youthworks - Intern program 
for youth at risk - three interns @ $2,000 
ea. (total annual cost per intern is $4,000 - 
MOCYF pays for the $2,000 balance per 
intern 



$0 



Supplemental 
Proposed Appropriation 
Budget Request 



$44,955 



$300,000 



$44,955 



$0 


12.527 
$57,482 


1L522 
$57,482 


$312,174 

83.090 

$395,264 


$312,174 
$395,264 




$466,124 


$323,271 




$2,238,612 


$2,101,567 




$0 



$0 


$16,530 

2,100 

6.492 

$25,122 


$16,530 
2,100 

$25,122 



$300,000 



6,000 



6,000 



94 



11-24-1998 15:30 4157537566 JUV. PROB. BUS. OFC. p. 03 

Attachment 1 
Page 2 of 2 

Adult Probation - Domestic Violence Program ■ 
Services are provided by Adult Probation 
Officer staff of the Domestic Violence Unit 
(an average of $23.00 per/hr. x 1,043 fan.) = 

$23,989 Q 24.000 24.000 

Subtotal - Svcs. of Othr. Depts. $0 $330,000 $330,000 

Total $3,100,000 $3,232,706 $412,604 



35 



NOU-23-1998 08:48 JUUENILE PROBATION 4157537557 H.U2 

Attachment 2 



Special Assistant XTTT (Communit y Coordinator^ 

Why position is needed at this time: 

The department's budget currently includes approximately SI. 3 million (general funds) 
for 14 community based organization (CBO) contracts. Historically, the Director of 
Community Services has served, on a limited basis, as the primary liaison/coordinator 
between the department, community representatives, families, private/governmental 
agencies and the CBOs. Such coordination is important in order to ensure the best 
possible service outcomes and to address concerns. 

Under the TANF expenditure plan for FY 1998/99, an additional approximately 1.3 
million has been designated for CBO contracts. The Department anticipates that the 
number of CBO contracts will at least double as a result of this funding. In order for the 
department to provide effective coordination of these expanded contract services an 
additional position is needed. 

Doties of the Commnnitv Coordinator 

This position, which will be assigned to the Community Services division, will primarily 
serve as a liaison/coordinator between the department, community representatives, 
families, private/governmental agencies, and the CBO contractors. Additional duties will 
include (1) assisting with the development of Request for Proposals, (2) assisting in the 
development of the division budget, and (3) assisting in the division's planning. 



TOTAL P. 02 



56 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Item 19 - File 98-1926 



Department: 



Item: 



Amount: 
Source of Funds: 
Description: 



Mayor's Office of Public Finance 
Emergency Communications Department 

Resolution approving the issuance of Lease Revenue 
Bonds of the City and County of San Francisco Finance 
Corporation (Corporation): approving the execution and 
delivery of a First Amendment to the Site Lease 
Agreement between the City and County of San 
Francisco, as lessor, and the Corporation, as lessee, 
relating to certain Police and Fire facilities in the City; 
approving the execution and delivery of a First 
Amendment to the Lease and Option to Purchase 
Agreement between the Corporation, as lessor, and the 
City, as lessee, relating to the property; approving the 
execution and delivery of a First Supplemental Indenture 
of Trust among the Corporation, the City and the Trustee; 
approving the execution and delivery of a Continuing 
Disclosure Certificate relating to said bonds; ratifying 
previous actions taken in connection with the foregoing 
matters: adopting findings under the California 
Environmental Quality Act and findings pursuant to City 
Planning Code Section 101.1; and authorizing the taking 
of appropriate actions in connection therewith. 

Not to exceed $18,750,000 in principal 

San Francisco Finance Corporation Lease Revenue Bonds 

In November of 1993, voters approved the issuance of $50 
million in bonds to finance the acquisition, construction 
and installation of an 800 megahertz radio system, now 
called the Citywide Emergency Radio System (Project). It 
is expected that the Project will provide uninterrupted, 
highly reliable communication abilities which will allow 
the Police, Fire, Paramedics and other City agencies to 
provide enhanced delivery of emergency services in the 
event of an emergency or natural disaster. Furthermore, 
the purchase and construction of certain facilities and 
equipment, such as antenna towers, microwave 
transmitters, fiber optic cabling, and hand-held radios, to 
be funded by the issuance of these subject bonds are 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

97 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



necessary to make the 911 Combined Emergency 
Communications Center operational. 

The San Francisco Finance Corporation (Corporation) is a 
nonprofit benefit corporation formed, among other 
purposes, to facilitate lease financing for the City. In 
January of 1998, the initial series of Corporation Lease 
Revenue Bonds, Series 1998-1, were issued. The bond 
proceeds, which totaled $31,250,000, financed Phase I of 
the Project. A budget for Phase I, provided by the 
Emergency Communications Department, is included in 
Attachment 1. 

This proposed resolution would authorize the issuance 
and sale of SFFC Lease Revenue Bonds, Series 1999-1, in 
a principal amount not to exceed $18,750,000, to provide 
funding for Phase II of the Project. A budget for Phase II, 
provided by the Emergency Communications Department, 
is also included in Attachment 1. 

As shown in Attachment 1, Series 1999-1 bond proceeds 
would finance Phase II of the Project, including the 
purchase of approximately 4,358 Motorola mobile and 
desktop radio units and accessories, and related 
programming, installation, testing and user training. 
Phase II also includes the installation of a fiber optic 
Metropolitan Area Network to interconnect the main 
antenna site with the dispatch center and downtown 
antenna sites. 

Approval of the subject resolution would also authorize 
the lease by the City to the Corporation, and leaseback to 
the City of the following District Police and Fire Station 
facilities: 



Propertv 




Address 


Department 


Bayview Station 




201 Williams Avenue 


Police 


Mission Station 




630 Valencia Street 


Police 


Taraval Station 




2345 24 th Avenue 


Police 


Fire Station No. 


24 


100 Hoffman Street 


Fire 


Fire Station No. 


31 


441 12 th Avenue 


Fire 



Pursuant to the First Amendment to the Site Lease, by 
and between the City, as lessor, and the Corporation, as 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

98 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

lessee, the City would lease the five facilities identified 
above to the Corporation, for a maximum term not to 
exceed 30 years from the date of commencement thereof, 
at a total rent of $1. Pursuant to the First Amendment to 
the Lease, the City will lease back the facilities for a 
maximum term not to exceed 30 years and at a maximum 
annual base rent of not to exceed $2,150,000 (see 
Comment No. 5). The Corporation would use the rental 
payments to pay for the debt service on the subject Lease 
Revenue Bonds, Series 1999-1. According to Ms. Lisa 
Marie Harris of the Emergency Communication 
Department, the source of funding for the rental 
payments is the General Fund. Ms. Harris reports that 
the first scheduled debt payment is estimated to be in 
April of 2000. 

According to Ms. Laura Opsahl of the Mayor's Office of 
Public Finance, the subject asset transfer is a commonly 
used method for public finance and is structured the same 
as the asset transfer for the previously authorized SFFC 
Lease Revenue Bonds, Series 1998-1. Ms. Opsahl notes 
that due to the fact that the Citywide Emergency Radio 
System is highly customized and the equipment may be 
difficult to re-let in the event that the City failed to meet 
its payment obligation, real property is used as collateral 
for the bonds, rather than the equipment itself. 

Comments: 1. Ms. Opsahl anticipates an approximate sale date for 

the proposed Series 1999-1 Lease Revenue Bonds of 
January 13, 1999. 

2. The Office of Environmental Review, in the 
Department of City Planning, has conducted the 
appropriate environmental review under the California 
Environmental Quality Act (CEQA) and the State CEQA 
Guidelines and has determined that the Project is 
categorically exempt under Public Resources Code Section 
21085 and Guidelines Section 15301-15303. The 
Department of City Planning has also determined that 
the Project is consistent with the Eight Priority Policies 
under Planning Code Section 101.0. 

3. According to Ms. Harris, the total estimated project 
costs for the Citywide Emergency Radio System is 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

99 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



$58,066,100, including the radio equipment, radio 
administration, and financing costs. Ms. Harris notes that 
the total estimated project costs for the E-911 Project is 
$166,370,823, including the Citywide Emergency Radio 
System costs of $58,066,100. Funding sources include the 
subject Lease Revenue Bonds, previously issued Lease 
Revenue Bonds. Emergency 911 Response Fee revenues 
and related interest earnings, grants, and General Fund 
revenues. See Attachment 2 for total E-911 Project costs 
and funding sources. Ms. Harris reports that the 911 
Center and related Citywide Emergency Radio System 
are expected to be fully operational by December of 1999. 

4. Under the proposed resolution, the annual interest 
rate of the bonds could not exceed 12 percent. However, 
Ms. Opsahl reports that if the bonds were sold November 
25, 1998, the bonds would be sold with an estimated 
overall effective interest rate of 4.603 percent and would 
have an estimated average interest rate of 4.48 over the 
estimated 14-year term of the bonds. 

5. The requested maximum bond authorization is 
$18,750,000. However, Ms. Opsahl reports that under 
current market conditions, it is anticipated that 
$18,620,000 of these subject bonds will actually be issued. 
Ms. Opsahl estimates that with a 14-year term for the 
bonds and assuming an average interest rate of 
approximately 4.48 percent, the proposed sale of bonds in 
the amount of $18,620,000 would result in interest costs 
of approximately $7,057,806 over the 14-year life of the 
bonds. Over the 14-year period, the total principal and 
interest costs of $25,667,806 would result in an average 
annual debt service of approximately $1,800,000. M- 
Opsahl reports that debt service is estimated to be 
substantially level over the term of the Bonds. 

6. Approval of this proposed resolution would authorize 
the sale of up to $18,750,000 in Lease Revenue bonds. In 
FY 1998-99, the Board of Supervisors approved the 
appropriation of $13,808,365 in the Emergency 
Communication Department's budget, in anticipation of 
the sale of these bonds. Expenditure of the remaining 
bond proceeds, approximately $4,941,635. will be subject 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

100 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



to subsequent appropriation approval by the Board of 
Supervisors. 

However, approval of this proposed resolution would 
authorize the expenditure of a portion of the Bond 
proceeds for costs of issuance, not to exceed $280,000, 
including workorders in the amounts of an estimated 
$30,000 to the City Attorney's Office, $30,000 to the 
Mayor's Office of Public Finance and Legislative Affairs, 
$20,000 to the Controller's Office and the balance of 
$200,000 to financial advisers, bond counsel, bond trustee, 
rating agencies, financial printers, advertisers and 
property insurers. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

101 



NOU-25-1998 09:51 



911 PROJECT 



415 2922081 P. 01 

Attachment 1 





800 MHz 


Project 


Phase 1 


Project Equipment 






Costs 


Construction Upgrades to Transmission Sit 


5,445,508 


Fixed Network Equipment 






11,226,859 


Wireless Data Network 






1,280,988 


Portable and MobileTest Equipment 




833,281 


Dispatch Equipment 






1,940,853 


Contruction Management/Engin 




3,992,344 


Installation 






2.424,587 


Training - phase I 






441,163 


Console Furniture 






900.000 


Interest Earnings 






(702,556) 


Original Issue Discount 






133,641 


Debt Service Fund 






2,523.032 


Cost of Issuance 






804,019 * 


Contingency 






6,269 


Total Phase 1 Bond Sale 






31,249,998 



800 MHz Project Phase II 


Project Equipment 


Costs 


Portable and Mobile Radios GR 1 


5,010,897 


Portable and Mobile Radios GR 2 


7,268,345 


Contruction Management/Engin 


2,350,930 


Training - phase II 


180,193 


Metropolitan Area Network (MAN) 


1,507,000 


(Fiber Natwork) 




Metropolitan Area Network (MAN) 


300.000 


(termination equipment) 




Interest Earnings 


(306,431) 


Debt Service Fund 


1,882,000 


Cost of Issuance 


448,966 * 


Contingency 


100 


Total Phase II Bond Sale 


18,620,000 



Cost of Issuance includes underwriters discount and bond insurance 



11/25/98 



TOTAL P. 01 



102 



NOU-25-1998 11=41 



911 PROJECT 



415 2922081 P. 01 



911 Project Sonrces and Costs 



Attachment 2 



Source 






Uses 








Budget Name 


Project Costs Financing Costs Total Costs 


Prior Fiscal Year GF Transfers 

91 1 Fees ($1 assumption) 

911 Interest Earnings 

Grants 

GF Contributions to Deficits 

Total 


$23^4,683 

$99,599,057 

$5,153,371 

$4,880,000 

$33,503,712 

$166,370,823 


Building 
AIS 

CAD 

Communications 
Project Management 
Community Mitigation 


$25,273,403 
$10,817,752 

$20,872,899 
$17,207,422 

$9,926,400 
$3,031,000 








Total 


$87,128,876 


$20,125,847 $10734,723 






800 MHz Project 










Radio Ac5ministration 
Radio System 


$8,416,100 
$45,100,958 








Total 


$53,517,058 


$4,549,042 $58,066,100 






Total 911 Project Total 
plus Training 


$140,645,934 


$24,674,889 $165,320,823 
$1,050,000 


$166,370,823 





Fiscal Year 97-98 Uses and Sources 


911 Project Sources 


911 Project Costs 


911 Fee Funds 


$1S,517,451 


Building 


$19,773,000 


General Fund 


- 


Communications 


$10,835,367 


Bond Sales 


$54,340,002 


AIS 


$2,248,000 


Grants (COPS More, Fed) 


$4,880,000 


CAD 


$10,171,676 






Community Mitigation 


$500,004 


Total 


$74,746,543 


800 MHZ 

Total 


$3 U 18.496 


$74,746,543 



Post-it* Fax Note 




Reviled ■ of 11/25/9$ 



TOTAL P. 01 



103 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Item 20 - File 98-1849 



Department: 
Item: 

Amount: 
Source of Funds: 

Description: 



Budget: 



Public Library 

Department of Public Works 

Supplemental appropriation of $250,000 of 1988 
Public Library Improvement Bond interest earnings 
for capital improvement projects. 

$250,000 

1988 Public Library Improvement Bond interest 
earnings 

The proposed supplemental appropriation of 
$250,000 would be used by the Public Library to 
repair the roof, including the gutter and drain 
system at the Golden Gate Branch Library. The 
Golden Gate Branch Library is located at 1801 Green 
Street. 

The source of funds for the proposed supplemental is 
the interest earnings from the $109.5 million 
General Obligation bond issue, approved by the San 
Francisco voters in 1998, to build a new Main 
Library and renovate and repair Branch Libraries. 
To date, these bonds have earned approximately 
$16.7 million in interest earnings, of which 
approximately $14.6 million has been appropriated, 
leaving an unappropriated balance of approximately 
$2.1 million. The proposed ordinance would 
appropriate $250,000 of this $2.1 million current 
balance, leaving a remaining unappropriated balance 
of $1,850,000. 

Attachment I, provided by the Department of Public 
Works, contains a budget for the proposed $250,000 
project. As shown in the attached budget, the base 
construction cost is estimated at $153,500, plus a 
contingency of $18,420, or 12 percent of the $153,500 
amount for a total estimated construction cost of 
$171,920. The remaining $78,080 of the total 
estimated project costs of $250,000 are for non- 
construction costs for DPW to provide architectural, 
mechanical, structural and construction 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

104 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

management support for this project and for permit 
fees. DPWs costs of $75,622 ($78,080 less $2,458 for 
permit fees) represents 30 percent of the total 
$250,000 estimated cost of the project. 

Comments: 1. Ms. Tina Olson of DPW reports that a 30 percent 

fee for DPW to complete the planning, construction 
document phase and the construction support 
services is fairly standard for smaller projects, such 
as this Golden Gate Branch Library roof project. 

2. According to Mr. Roger Wong of DPW, the 
proposed roof repairs at the Golden Gate Branch 
Library are estimated to cost significantly more than 
a typical roof repair and replacement project for the 
following reasons: (1) the Landmarks Preservation 
Advisory Board has designated the Golden Gate 
Branch Library, which was built in 1914, as an 
historically significant building, requiring that all 
the exterior features be maintained; (2) the Library's 
roof is currently constructed from the original terra 
cotta tiles, which are proposed to be removed and 
replaced after repairs to the roofs substrate, which is 
the roofs wooden deck structure, are completed and 
a waterproof membrane system are installed; (3) the 
Library has four skylights, which need to be 
replaced; (4) portions of the drainage system, which 
are also leaking, are embedded in the concrete walls 
of the building, which will require opening the walls 
of the Library building to perform the necessary 
drainage repairs; and (5) the water leaks have 
loosened lead paint and caused asbestos tiles to 
break apart, thus necessitating additional lead and 
asbestos abatement requirements. 

3. In addition to the proposed requested 
supplemental appropriation, it should be noted that 
$250,000 of General Fund monies was included in 
the Public Library's FY 1998-99 budget to repair the 
roofs at the Merced, Parkside and Anza Branch 
Libraries. Mr. Rich Walsh, the Director of Building 
Operations for the Public Library reports that new 
roofs have been completed at the Merced Branch 
Library and the Parkside Branch Library, at a cost of 
approximately $20,000 each, under the direction of 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

105 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



the Bureau of Building Repair. According to Mr. 
Walsh, the roof at the Anza Branch Library is 
anticipated to be more complicated and expensive to 
repair, and the work has not yet begun. 

4. According to Mr. Victor Talatala of DPW, DPW 
plans to conduct a competitive bid for the Golden 
Gate Branch Library roof repairs. However, Mr. 
Talatala notes that, to date, DPW has not yet 
advertised for bids on this project. In response to 
inquiries by the Budget Analyst, Mr. Wong reports 
that DPW does not have other bids for roof repairs 
for other Branch Libraries or other buildings that are 
similar to this project. Furthermore, Mr. Talatala 
reports that, at this time, the bidding climate is not 
to DPW's advantage because of the amount of other 
construction activity currently occurring in the Bay 
Area and that several of DPW's recent bids were 
higher than DPW had originally estimated. 

Mr. Wong reports that if the construction bids are 
higher than the $171,920 estimated by DPW, the 
Public Library would need to provide additional 
funds to finance the cost of the new roof and related 
repairs for the Golden Gate Branch Library. Mr. 
Wong reports that DPW and the Public Library will 
have to await the receipt of the bids to determine the 
exact cost for this project. According to Mr. Walsh, if 
additional funds are needed for this project, the 
likely source of funds would be the 1988 Public 
Library Improvement Bond interest earnings, the 
same source of funds for this supplemental 
appropriation. However, any further supplemental 
appropriation of funds for this purpose would be 
subject to approval by the Board of Supervisors. 

5. According to Mr. Wong, if the proposed 
supplemental is approved immediately and there are 
no increases in costs or delays in the bidding process, 
the work could begin on the Golden Gate Branch 
Library sometime in February of 1999. Again, 
assuming no major problems, Mr. Wong estimates 
that the project would take approximately two 
months to complete, or by approximately April of 
1999. However, Mr. Wong notes that the Golden 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

106 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Gate Branch Library plans to remain open most of 
the time during the construction project, which may 
result in some delays. 

6. Mr. Walsh notes that the Public Library ifl 
currently using approximately 30 to 40 buckets in 
the attic of the Golden Gate Branch Library, to catch 
water from the leaks in the roof. Mr. Wong reports 
that since there are already numerous leaks in the 
building which require immediate attention, DPW is 
currently obtaining estimates for a temporary roof 
protection for the Golden Gate Branch Library, 
during this winter's rains. According to Mr. Wong, it 
is likely to cost approximately $5,000 to $7,000 to 
provide such a temporary roof protection for the 
interim period, until the major roof repair project can 
begin. Mr. Wong reports that DPW would use part of 
the construction contingency funds of $18,420 to 
finance the cost of the temporary roof protection. 

7. Given that the Golden Gate Branch Library's roof 
already has numerous leaks and is in immediate 
need of repairs, the Budget Analyst recommends 
approval of the proposed supplemental appropriation 
of $250,000. However, it should be noted that if the 
bids exceed the estimate prepared by DPW, the 
Public Library and DPW may be required to request 
an additional supplemental appropriation of funds to 
complete this project. 

Recommendation: Approve the proposed supplemental appropriation 
ordinance. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

107 



CONSTRUCTION 



Attachment 
Page 1 of 5 



MAIN ROOF ffEBRACOTTAl 

REPLACE (El WATERPROOF MEMBRANE 
W/ (N) SBS SYSTEM, REPAIR (£) ROOF 
SUBSTRATE. INCLUDES REMOVAL & 
REINSTALLATION OF <E) TERRA COTTA ROOF 
TILES. 

REPAIR k CLEAN (E) TERRA COTTA GUTTER 
$LNEW/(N)VUU<£N«01 GUTTER UNNG 

PLUMBING ReTROFTRN) GUTTER PtPNG, 

(N) PLUMBING AT ATTIC 1 (N) CONCEALED RWL 

CONNECT TO (E) STORM DRAIN SYSTEM 

ALLOWANCE FOR REPLACEMENT OF BROKEN 
TERRA COTTA ROOF TILES <1B% REPLACEMENT) 

ROOF SHEATHING DRYROT REPAIR 

MOVNG EXPENSE TO DELIVER TERRA COTTA 
ROOF TILES OFFSITE FOR TEMP. STORAGE 
1 BACK FOR REINSTALLATION. SEE NOTE 3 

CEIL. * WALL PLASTER DEMO FOR MSTALLATION 
OF (N) RWL t RESTORATION TO ORIGINAL 

CONDITION. INCLUDING LOCALIZED ASBESTOS 
ABATEMENT WORK. SEE NOTE 2. 



37SOS.eS2£00/SO 
ALLOW $1S400 

ALLOW tiS.OOO 

ALLOW $6,000 
ALLOW $10,000 

ALLOW $2 .000 
$5,000 



$74,000 

$15,000 

$15,000 

$£.000 
$10,000 

$2,000 

$5,000 
$127,000 



LOWER ROOF 

REPLACE (E) ROOF WITH (N) SBS SYSTEM 
ROOF INCLUDING SUBSTRATE REPAIRS. 
(N) FLASHING. CURBS. ROOF DRAINS 4 RWL 

REPLACE 4 SKYLIGHTS INCL (N) CURBS $ 
FLASHING. INSTALL (N) WNOOW CASHING. 



SOFT COST 

PERMIT FEE 



7 SOS.$ H5OttSO-$10.5O0 



ALLOW $16,000 

tIM TOTAt 

TOTAL 

1?% COM*T COMTIN 
TOTAL CONST COST 



1.6*. OF CONST COST 



PROGRAMMING $ PLANNING 
ARCHITECTURAL 
MECHANICAL 
STRUCTURAL 



CONSTRUCTION DOCUMENT PHASE 
ARCHITECTURAL 
MECHANICAL 
STRUCTURAL 
BCM-CONTRACT PREP 



CONSTRUCTION SUPPORT SERVICES 

ARCHITECTURAL CONST. ADMIN 
MECHANICAL CONST. SUPPORT 
STRUCTURAL CONST. SUPPORT 
BCM CONSTRUCTION MANAGEMENT 



NOTES: 

1 . WINDOW PAINT LEAD ABATEMENT 

NOT INCLUDED. 
2 ASBESTOS ABATEMENT LIMITED 

TO AREA OF RWL CONNECTION 

TO STORM DRAIN ONLY. 
3. TEMPORARY STORAGE LOCATION 

FOR TERRA COTTA ROOF TILES WILL 

B£ PROVIDE© BY SFPL 



$10,500 



$16.000 

$25,500 

STS3.S00 
$16,420 
$171,920 



$2,456 





$7,097 
$2,040 
$1,960 
$1 1 .097 




$17,191 
$6,020 
$4,060 

$3,500 
$30,771 




$9,568 
$2,040 
$1,680 
$20,468 
$33,756 


TOTAL SOFT COST 


$76,060 


TOTAL PROJECT COST 


CM.0OC 



108 



NOV 10" T 9e"0i:55PM 6b&T FAX 9eZZFX 



P.3» 



Attachment 
Page 2 of 5" 



GOLDEN OATE VALLEY LIBRARY ROOP REPAIRS 
BOA Fa* Breakdown 

SCHEDULE* 



Programming and Planning Phaee 



Studio Manager 


Montha Hr/month 
1 4 


Total hr 

4 


Rata 

98.25 


Subtotal 
387 


Project Managar 


1 


16 


16 


92.40 


1/478 


Architect 


1 


40 


40 


8600 


3.440 


Architectural Associate II 


1 


24 


24 


74.25 


1.782 


Total 










7,097 


SCHEDULE B 












Construction Document / Bid Pttaaa 










Studio Manager 


1 


2 


2 


98.25 


199 


Project Manager 


1 


24 


24 


82.40 


2,218 


Architect 


1 


120 


120 


66.00 


10.320 


Architectural Ataooiate II 


1 


60 


60 


74.25 


4.45S 


Total 










17,191 


SCHEDULE C 












Construction Support Services 












Studio Manager 


3 


2 


6 


99.25 


596 


Project Manager 


3 


8 


24 


92.40 


2.218 


Architect 


3 


21 


63 


86.00 


5,418 


Architectural Aaaoclate II 


3 


6 


18 


74.25 


1.337 


Total 










9,568 


Total BOA Pee 










18,888 



109 



NOV 10~ T 9B~0i:'5$Pn 66*T FAX 9822FX 



P. 5= 

Attachment 
Pace 3 of 5 



GOLDEN GATE VALLEY LIBRARY ROOF REPAIRS 
BOE/Mech. P— Breakdown 

SCHEDULE A 



Programming and Planning Pheee 



Mechanical Engine* 
Total 



Month* Hr/month Total hr 
1 24 24 



Rat* Subtotal 

85.00 2,040 

2.040 



SCHEDULE B 

Construction Document / Bid Phaae 

Machanlcal Engineer 1 



Engineering Assistant 
Total 



1 



28 
70 



28 
70 



85.00 
52.00 



2 .3S0 

3.640 
6.02O 



SCHEDULE C 

Construction Support Service* 

Mechanical Engineer 
Total 

Total BOE/Mech.. Fee 



24 



85-00 



2.040 
2,040 

10,100 



110 



NOV 10~ T 98~~0i:'55PFi 66&T FAX 9022FX 



P.& 
Attachment 
Page A of 5 



OOLOEN GATE VALLEY LIBRARY ROOF REPAIRS 
BOE/Strue. Fee Breakdown 

SCHEDULE A 



Programming and Planning Phasa 



Associate Engineer 
Total 



Month* Hr/month Total hr 
1 28 28 



Rats Subtotal 

70.00 1.960 

1,960 



SCHEDULE B 

Construction Document / Bid Phase 

Aiaodete Engineer 
TotaJ 



58 



68 



70.00 



4.060 
4,060 



SCHEDULE C 

Construction Support Service* 

Associate Engineer 
Total 

Total BOE/Strue Fee 



24 



70.00 



1,680 
1.680 

7,700 



NOTE: 

BOE/Structural't tee will be on as needed basis. 



Ill 



MQV 10_L98__01L55PI1 6&&T FAX 9e22FX 



p.e 

Attachment 
Page 5 of 5 



GOLDEN OATS VALLEY UlflARY ROOF REPAIRS 
BOM Fee Breakdown 

SCHEDULE A 



Programming and Planning Phase 



NONE 



Months Hr/month Total hr Rata Subtotal 



SCHEDULE B 

Construction Document / Bid Phase (Contract Prep Work ) 

Associate Engineer 1 50 50 

Total 



70.00 



3.500 
3,500 



SCHEDULE C 

Construction Support Services 



Construction Manaoement: 












Construction Manager 


3 


32 


95 


82.00 


7,872 


Field Inspector 


3 


32 


96 


75.00 


7,200 


Prevailing wage monitoring (allow) 










33571 


Clerical support (allow) 
Total 










1,539 ) 
20.468 v/ 



Total BCM Fee 



23,968 



112 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Item 21 - File98-1850 



Department: 
Item: 

Description: 



Comments: 



Police Department 

Ordinance amending the Administrative Code by 
amending Section 16.6-47.1 relating to Police Department 
memberships by adding specified organizations. 

The proposed ordinance would amend the Administrative 
Code, Section 16.6-47.1 to authorize the Police 
Department to have memberships in the following two 
organizations: 



Organizations 

National Organization of Black Law 

Enforcement Executives 
California Burglary and Theft Investigators 

Association 

Total 



Annual 

Membership 

Fee 



$75 
24 



$99 



Recommendation: 



1. Mr. Andres Acevedo of the Police Department reports 
that membership in both organizations is for networking 
and professional development purposes. 

2. Mr. Acevedo advises that the $99 annual membership 
fee for the two organizations is currently included in the 
Police Department's FY 1998-99 budget. Therefore, this 
request would not represent any additional costs to the 
City. 

Approve the proposed ordinance. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

113 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Item 22 -File 98-1887 



Departments: 



Item: 



Location: 



Department of Real Estate 
Department of Administrative Services 

Resolution authorizing the execution of a management 
agreement for a cafe on the ground floor of City Hall with 
L & L, a partnership. 

Ground Floor of City Hall at 1 Dr. Carlton B. Goodlett 
Place, San Francisco 94102 



Purpose of 

Management 
Agreement: 



Lessor: 

Lessee: 

No. of Sq. Ft. and 
Cost Per Month: 



Annual Payment 
by Lessee: 



To permit operation of a cafeteria at City Hall Cafe and to 
provide space for it on the ground floor of the City Hall 
building. 

City and County of San Francisco 

L & L, a partnership 



The proposed space consists of approximately 850 square 
feet on the ground floor of City Hall, to be leased at $1.00 
per square foot. The monthly cost to L & L consists of 
rental payment of $850 per month (base rental rate), plus 
an additional estimated payment of $2,700 per month 
based on 9% of the gross monthly sales (percentage rental 
rate). Such gross monthly sales are estimated by Mr. 
Mark Zuffo of the Department of Real Estate (DRE) to be 
$30,000 per month. 



The annual base rental payment by L & L to the City 
would be $10,200 per year ($850 per month times 12 
months), and an annual percentage rental estimated at 
$32,400 per year ($2,700 per month times 12 months) 
based on 9% of the estimated gross monthly sales of 
$30,000 per month. Together, the annual payment by L & 
L to the City is estimated to be $42,600 per year ($3,550 
per month times 12 months). 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

114 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Utilities Provided 
By Lessor: 

Janitorial Services 
By Lessee: 

Term of Lease: 



The City will pay for all utilities, which Mr. Zuffo 
estimates will cost $150 per month, or $1,800 per year. 



The lessee will be responsible for janitorial services at the 
leased space. 

Five years, from January 4, 1999 through January 3, 
2004. 



Right of Renewal: 



Description: 



The lessee will have an option to extend the term of the 
lease for one additional 5-year period at a rate no less 
than the higher of either the previous rental amount or 
fair rental value as determined by the DRE. 

Services and Operation of Proposed City Hall Cafe 

Under the proposed Management Agreement, the City 
Hall Cafe would provide an "affordable, healthy, and 
diversified menu," consisting of a salad bar, a variety of 
sandwiches, pastries, coffee and other beverages, and 
smoothies, according to Mr. Zuffo. There would be no 
grilled items nor dishes requiring stove capacity. The 
hours of operation would be 7:00 a.m. through 4:00 p.m. 

Fiscal Projections of Proposed City Hall Cafe 

Base Rent 

Under the terms of the proposed Management Agreement, 
the City would receive $850 per month from L & L as 
base rent, or $10,200 per year for the leased space. 

Percentage Rent 

Also under the terms of the proposed Management 
Agreement, the City would receive a percentage rent 
based on 9% of the gross monthly sales. 

Estimations of gross monthly sales, according to Mr. 
Zuffo, are based on the expected daily sales of $1,500 per 
day from the proposed City Hall Cafe. At 20 working 
days per month, expected gross monthly sales are $30,000 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

115 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



per month from the operation of the proposed City Hall 
Cafe. 

Thus, at 9% of the estimated gross sales of $30,000 per 
month, the City expects to receive $2,700 per month in 
percentage rent, or $32,400 per year, in addition to the 
base rent. 

Expected Total Rental Amount to City 

In total, the City expects to receive approximately $3,550 
per month, or $42,600 per year, from base rental and 
percentage rental payments under the proposed 
Management Agreement. 



Utilization of Proposed Lease 



Citv Hall Construction 



The build out of the proposed leased space on the ground 
floor of the City Hall building is currently underway as 
part of the overall, seismic renovation of the City Hall 
building. Building out for the proposed City Hall Cafe 
includes providing . the flooring, paint, electricity, 
plumbing, and other structural components. Total 
estimated costs are $50,000 and are funded from monies 
previously appropriated for the City Hall Project, 
according to Mr. Steve Nelson, Director of the DAS. 

Equipment Provided By L & L 

According to Mr. Zuffo, under the terms of the proposed 
Management Agreement, L & L is required to purchase 
specific pieces of equipment to operate the City Hall Cafe. 
Such equipment includes a refrigerator, cash register, 
microwave, toaster, espresso machine, coffee maker, 
automatic slicer, dry display case, sink, ice machine, 
utility cart, soup warmer, and soda system with 
carbonator. According to Mr. Zuffo, the estimated cost of 
such equipment to be borne solely by the lessee is 
approximately $84,000, including installation. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

116 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Employees To Be Hired Bv L & L 



According to Mr. Zuffo, L & L expects to hire four 
employees to work at the proposed City Hall Cafe. 
Depending on the flow of customers, there would likely be 
at least three employees working on a daily basis. 

Dining Space Not In Proposed Lease 

Mr. Zuffo estimates that approximately 200 to 300 people 
would patronize the proposed City Hall Cafe on any given 
business day. To accommodate these customers, 2,134 
square feet of floor space located on the ground floor of 
City Hall will serve as the dining space, outside of the 850 
square feet leased for the actual City Hall Cafe, itself. 
Holding 34 tables and 94 chairs provided by the City, this 
2,134 square feet of dining space is not included in the 
proposed lease with L & L, is separated by doors from the 
leased space, and will instead be shared in common by all 
the occupants of the City Hall building as an enclosed 
"public area" or general lunch room located on the ground 
floor of City Hall. 

Advertisements By Lessee 

Mr. Zuffo states that under the terms of the proposed 
Management Agreement, all advertisements for the City 
Hall Cafe would be done by L & L. According to Mr. 
Zuffo, any advertisements within the City Hall building 
must be approved by the building manager, who has been 
hired by the Director of the Department of Administrative 
Services. 



Comments: 1. Fair Market Value 



Mr. Zuffo advises that the base rent of $850 per month 
plus an estimated $2,700 per month, or the percentage 
rent of 9% of gross monthly sales, together represent fair 
market value, based on appraisals of the existing real 
market in the area made by the DRE. 

2. Process of Selecting Winning Proposal 

According to Mr. Zuffo, starting September 8, 1998. the 
DRE sent out a Request for Proposals to over 100 firms 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

117 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



and placed other advertisements regarding the Request 
for Proposals in such newspapers as The San Francisco 
Chronicle , The San Francisco Examiner and The 
Independent . The DRE also provided notice regarding the 
Request for Proposals to the Golden Gate Restaurant 
Association (GGRA), through which information was 
disseminated to the GGRA's member restaurants. The 
DRE also provided notice in the Purchasing Department's 
newsletter, which went on the Internet. 

Four written proposals were received by the DRE by the 
deadline of September 25, 1998. 

Two committees were formed to make the final selection. 
According to Mr. Zuffo and Mr. Nelson, the Pre-Selection 
Committee consisted of three members chosen by the City 
Hall Policy Committee: Steve Nelson (Director of the 
DAS), Ben Rosenfield (Budget Analyst for the Mayor's 
Office of Finance and Legislative Affairs), and Mark Zuffo 
(DRE). The City Hall Policy Committee consisted of 
seven members: Susan Leal (Treasurer), Matthew Hymel 
(Mayor's Director of Finance), Tony Iron (City Hall 
Project Manager), Ed Harrington (Controller), John 
Taylor (former Clerk of the Board of Supervisors), Steve 
Nelson (Director of the DAS), and Mark Primeau 
(Department of Public Works (DPW)). 

3. Selection of L&L 

The attachment provided by Mr. Zuffo contains a list of 
the firms which submitted proposals and the amount of 
the rentals proposed. 

The attachment provided by the DRE shows the total 
proposed rental payment per month for each of the firms 
that submitted proposals. As shown in the attachment, L 
& L's estimated annual payment to the City is $42,600 
per year or $6,600 per year less than the highest proposed 
estimated annual payment of $49,200 per year, submitted 
by Roxano/Sotano, Inc. 

According to Mr. Zuffo, the L&L partnership was 
selected because it was the most responsive and qualified 
bidder. Mr. Zuffo advises that besides the proposed rental 
amounts, other selection considerations were the quality 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

118 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

of food, and the quality and kinds of services provided at 
other existing operations. L & L was chosen after visits 
were made to L & L's existing Boule Cafe in San 
Francisco and taste tests were performed. 

4. Status of Management Agreement 

The proposed Management Agreement is still in draft 
form as of the writing of this report. According to Mr. 
Zuffo, the parties to the Management Agreement do not 
anticipate any changes to the economic terms as agreed 
upon in the draft agreement. 

Recommendation: Approval of the proposed resolution is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

119 



NOU-19-1998 14:31 



CCSF REAL ESTATE DEPT 



415 552 9216 P. 02/02 



Proposed Rental Amounts* 



Name 


Base Rent 


Percentage 
Rent 


Total Rent- 


Annual 
Rent 


Celebrity Cafe 


$3,500 per 


7% of sales 


$3,500 per 


$42,000 




month 


(over $60,000) 


month 




Roxanne/Sotano 


52,000 per 


7% of gross 


$4,100 per 


$49,200 


Inc. 


month 


revenue 


month 




L&L, a 


$850 per month 


9% of gross 


$3,550 per 


$42,600 


Partnership 




revenue 


month 




Lucky Coffee 


$1,200 per 





$1,200 per 


$14,400 


Company 


month 




month 





•Rental amount was only one of many criteria used in the analysis of each proposal. 
-Total rent assumes gross revenue of $30,000 per month 



TOTAL P. 02 



120 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Item 23 -File 98-1952 



Departments: 



Item: 



Location: 



Purpose of Lease: 



Department of Real Estate (DRE) 
Department of Administrative Services (DAS) 

Resolution authorizing a lease of space at City Hall with 
the United States Postal Service. 

Ground Floor of City Hall at 1 Dr. Carlton B. Goodlett 
Place, San Francisco 94102 

To provide space for the operation of a United States Post 
Office at City HaU (City Hall Post Office) in order to 
provide postal services to City Hall tenants and citizens of 
San Francisco. 



Lessor: 

Lessee: 

No. of Sq. Ft. and 
Cost Per Month: 



Annual Payment 
by Lessee: 



Utilities Provided 
By Lessor: 

Janitorial Services 
By Lessee: 



Term of Lease: 



Right of Renewal: 



City and County of San Francisco 
United States Postal Service (USPS) 



The proposed space consists of approximately 818 square 
feet of office and common space at approximately $0,083 
per month ($1.00 per year over 12 months) 



The annual rental payment by USPS to the City would be 
$1.00 per year. 



The City will pay for all utilities. 



The lessee will be responsible for janitorial services 
within their leased space. 

Five years, from January 1, 1999 through December 31, 
2003. The USPS may terminate the lease with 90 days 
written notice with the City. 

There is no right of renewal under the lease agreement. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

121 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Description: Resuming Postal Services At City Hall 

The USPS occupied similar space on the ground floor of 
City Hall Project at the same proposed rent prior to the 
Seismic Strengthening Project. According to Mr. Steve 
Legnitto of the Department of Real Estate (DRE), the 
USPS is still defining the details of operation to be 
conducted at the proposed leased space, such as the hours 
of operation. 



Comments: 



Utilization of Space 

According to Mr. Legnitto, the space would be configured 
to accommodate postal machines and equipment 
necessary for the operation of the USPS. Moreover, of the 
818 square feet of leased space, 560 square feet will be 
occupied by the USPS and 258 square feet will be used for 
a public lobby and access for inter-departmental City 
mailing services. 

Tenant Improvements Completed 

According to Mr. Legnitto and Mr. Steve Nelson of DAS, 
Real Estate Division, the City has completed most of the 
tenant improvements to the premises, such as electricity, 
plumbing, and flooring. Mr. Legnitto states that a 
majority of such build out of the proposed leased space on 
the ground floor of the City Hall building was completed 
not for any intended occupancy of the USPS, but as part 
of the overall, seismic renovation of the City Hall 
building. According to Mr. Nelson, this build out was 
done from monies previously appropriated for the City 
Hall Project. 

1. Availability of Postal Services at City Hall 

According to Mr. Legnitto, resuming the lease 
arrangement with the USPS at the historical annual rent 
of $1.00 was needed in order to get the USPS to agree to 
make its services available at City Hall. Given that the 
USPS already provides postal services in the Civic Center 
area of the City at two locations (at the Fox Plaza Finance 
Station at 1390 Market Street and at the Federal 
Building Finance Station at 450 Golden Gate Avenue), 
access to a post office within the City Hall building is 

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Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

intended to benefit both the tenants of City Hall and the 
members of the public who come to City Hall. 

Recommendation: Approval of the proposed resolution is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

123 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Item 24 -File 98-1889 



Department: 
Item: 

Description: 



Comments: 



Tax Collector 

Resolution authorizing the Tax Collector to sell at public 
auction 120 parcels of tax-defaulted real property. 

According to State law, if a property owner does not pay 
his or her Property Taxes in any one year, the owner is 
then considered to be in default. The property owner then 
has five years during which he or she may repay the 
defaulted tax amount or apply for an installment payment 
plan. If the amount is not repaid in full within the five- 
year deadline, or the property owner has not initiated an 
installment payment plan or has defaulted on an 
installment payment, the Tax Collector must attempt to 
sell the property at public auction within four years. 

In order to conduct such an auction, the Tax Collector 
must receive authorization from the Board of Supervisors 
and the State Controller's Office. The proposed resolution 
would authorize the Tax Collector to sell certain tax- 
defaulted properties. 

1. Mr. Francis Nguyen of the Tax Collector's Office 
advises that 120 properties would be offered at the 
proposed auction. A copy of the list of properties to be 
auctioned is on file with the Clerk of the Board. 
According to Mr. Nguyen, the last public auction of tax- 
defaulted property occurred in September of 1997. 

2. According to Mr. Nguyen, the properties to be sold at 
the proposed auction consist of both residential and 
commercial property, including vacant lots that are 
buildable or have no contiguous property owners. 

3. Mr. Nguyen advises that the minimum required bid for 
each property to be sold at the proposed public auction 
would be (a) the amount of the delinquent Property Taxes 
owed on the property as of October 1998 and (b) $350 in 
administrative fees to cover costs related to conducting 
the auction. Mr. Nguyen reports that the amount of the 
tax default proceeds and the administrative fees would be 
credited to the Tax Collector upon sale of the property. 

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BUDGET ANALYST 



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Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Any remaining revenues from the public auction would 
revert to the property owner or to other parties of interest 
such as lien-holders. 

4. According to Mr. Nguyen, after the Board of 
Supervisors has approved this proposed resolution, the 
State Controller's Office would be requested by the Tax 
Collector's Office to also authorize the proposed public 
auction in order to comply with State law. Subsequent to 
receiving approval from the State, the list of properties to 
be sold at the public auction would be made available to 
interested parties (persons who have contacted the Tax 
Collector's Office to inquire about public auctions). At the 
same time, the public auction would be advertised once a 
week for three consecutive weeks in the San Francisco 
Independent. The newspaper advertisement would 
contain the time and date of the public auction and 
instructions as to how to obtain the list of the properties 
to be auctioned. Mr. Nguyen anticipates the public 
auction would take place in January of 1999. 

5. Mr. Nguyen advises that the Tax Collector is required 
to notify property owners who are in default by certified 
mail that they are required to pay their delinquent 
Property Taxes in full in order to prevent their property 
from being sold at a public auction. This notification, 
pertaining to the subject 120 properties to be sold at 
public auction, was sent to each of the property owners in 
August of 1998. Default notices and notices included in 
the Property Tax bill were also previously sent annually 
to each of the 120 property owners. According to Mr. 
Nguyen, upon receiving the authorization from the Board 
of Supervisors and the State Controller's Office, the Tax 
Collector will notify, by personal contact, each of the 
property owners and/or occupants of each property slated 
for public auction that the property is in default and full 
payment of delinquent Property Taxes is required in order 
to prevent their property from being sold at public 
auction. According to Mr. Nguyen, property owners have 
the option to repay all of the delinquent taxes in full until 
the close of business on the day prior to the proposed 
public auction. 



Recommendation: Approve the proposed resolution. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

125 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Item 25 -File 98-1810 



Item: 



Ordinance amending Municipal Code Part III, Article 12- 
A, Section 906B and Part III, Article 12-B, Section 1005.6, 
to add two additional years of Payroll Tax or Gross 
Receipts Tax credits for new jobs created on or after 
January 1, 1998 (the "New Jobs Tax Credit"). Article 12-A 
is known as the "Payroll Expense Tax Ordinance" and is 
the section of the Administrative Code that relates to the 
Employer's Payroll Tax. Article 12-B is known as the 
"Business Tax Ordinance" and is the section of the 
Administrative Code that relates to the Gross Receipts 
Tax. San Francisco businesses currently pay the City 
either the Payroll Tax or the Gross Receipts Tax, 
whichever results in a higher tax liability. 



Description: 



Currently, Article 12-A, Section 906(c)(1) and Article 12-B 
Section 1005.6 of the Municipal Code state that the 
amount of the New Jobs Tax Credit for any given year 
shall be a percentage of the additional Payroll Tax or 
Gross Receipts Tax that otherwise would be due for an 
individual hired after July 1, 1993 for a job qualifying for 
the credit (a new job that does not replace an existing job 
and which must remain as a position in the business firm 
for a minimum of two years) based on the employee's 
duration of employment as follows: 



Duration of Employment Tax Credit 

First 12 months 100% 

Second 12 months 50% 

This proposed amendment would add language that, for 
an individual hired on or after January 1, 1998 for a job 
qualifying for the New Jobs Tax Credit, the credit shall be 
as follows: 



Duration of Employment 
First 24 months 
Next 24 months 



Tax Credit 
100% 
50% 



Therefore, the proposed tax credit would be granted for an 
additional 12 months for each category of tax credit. 

Under the current language of the Municipal Code, the 
New Jobs Tax Credit will expire on December 31, 2002 

Board of Supervisors 
Budget Analyst 



12S 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



unless the Board of Supervisors extends the credit. This 
expiration date of December 31, 2002 would not change if 
the proposed ordinance is approved. 

In addition to the amendments described above, Section 
906B and Section 1005.6 would be amended to state that, 
for jobs created on or after January 1, 1998: "No credit 
shall be allowed for any third or fourth year of 
employment to the extent that such credit for third or 
fourth year employment and any credits for first and 
second year of employment would reduce the employer's 
(Payroll Tax or Gross Receipts Tax) liability below the 
employer's previous base year liability." 



Comments: 1. The Municipal Code requires the Tax Collector to 

report annually on the number of jobs qualifying each of 
four Payroll and Gross Receipts Tax credits, including the 
New Jobs Tax Credit, the Enterprise Zone Tax Credit, the 
Summer Youth Tax Credit, and the Garment 
Manufacturer's Tax Credit. The results of the New Jobs 
Tax Credit (which is the subject of this proposed 
ordinance) over the first five years of the program 
(calendar years 1993 through 1997) are summarized in 
the table below: 

New Jobs Tax Credit 





No. of 






Total Tax Cred 




Participating 






Granted to 


Calendar 


San Francisco 


No. of New 


Total Employee 


Participating 


Years 


Firms 


Jobs Each Year 


Tax Credits 


Firms 


1993 


16 


171 


171 


$ 15,104 


1994 


30 


499 


670 


105,758 


1995 


47 


2.478 


2.977 


611.230 


1996 


125 


2.283 


4,761 


2.149,748 


1997 


185 


5,621 


7,904 


2.227.091 




403 


11.052 


16,483 


S 5.108.930 



In summary, over the first five years of the New Jobs Tax 
Credit program, 403 San Francisco Businesses have 
participated in the program and 11,052 new jobs have 
been created. Total tax credits that have been granted for 
these new jobs amount to 55.108,930. 



Board of Supervisors 
Budget Analyst 



127 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



2. The fiscal impact to the City of this proposed 
expansion of the New Jobs Tax Credit program for an 
additional 12 months for each category of tax credit is 
dependent on the number of eligible new jobs that will be 
created over the five-year period commencing January 1, 
1998 and expiring December 31, 2002. New job creation is 
highly dependent on a number of factors, such as the 
number of new businesses locating in San Francisco, 
expansion to existing business and the overall strength of 
San Francisco's economy. As can be seen from the table 
above, a smaller number of jobs were created during the 
first three years of the New Jobs Tax Credit, 1993 
through 1995, while many more jobs have been created 
over the last two years, as economic conditions improved 
significantly in 1996 and 1997. 

3. As shown in the table on the previous page, from 
1993 through 1997, 16,483 new jobs have been created, 
and total tax credits granted for these new jobs amount to 
$5,108,930. If this proposed expanded version of the New 
Jobs Tax Credit had been in place during the first five 
years of the program, granting an additional 12 months 
for each tax credit category, the amount of the tax credits 
allowed for the 16,483 jobs created would have been 
$6,775,364, an increase of $1,666,434. 

4. As shown in the table on the following page, Mr. 
Richard Sullivan, Tax Collector, estimates that the 
reduced Business Tax revenues to the City, as a result of 
the proposed two additional years for granting New Jobs 
Tax Credits, would range from $3,252,567 for the five- 
year period 1998 through 2002 (an average of $650,573 
per year) to $5,150,756 for the five-year period 1998 
through 2002 (an average of $1,030,151 per year). The 
total number of new jobs that would be created between 
1998 and 2002 would range from 11,052 to 18,803 using 
the Tax Collector's estimates. 



Board of Supervisors 
Budget Analyst 

128 



Memo to Finance 


Committee 


December 2, 1998 Finance Committee Meeting 


Summary of Tax Collectors Estimates of New Jobs and Tax Credits Under 




Existing New Jobs Tax Credit Program and 


Prop 


osed Extension to New Jobs Tax Credit Program 




Reduction in 




Business Tax 




Total Tax Credits Revenues as a 




Total Estimated Total Tax Credits That Would be Result of 




Number of New That Would be Granted Under Extending the Average Annual 




Jobs Created Granted Under Proposed New Jobs Tax Increased Tax 


Assumed New Job 


Annually- 1998 Existing Two Extension to a 4 Credit b\ Two Credit Resulting 


Growth Rate 


through 2002 Year Provision Year Tax Credit Additional Years from Extension 


New Job Growth Rate 




based on 5-Year 


11,052 S5. 792. 163 S9.045.030 S3.252.867 $650,573 


Average from 1993 




through 1997 




New Job Growth Rate 




based on 3-Year 


18,803 S8.826.858 S13. 977.614 S5. 150.756 $1,030,151 


Average from 1995 




through 1997 






As noted in Comment 2 above, the actual number of new 




jobs that will be created between 1998 and 2002 will also 




depend on a number of economic factors that cannot be 




predicted at this time. Hence, actual new jobs and New 




Jobs Tax Credits could vary significantly from the 




estimates shown in the table above. 


Recommendation: Approval of the proposed ordinance is a policy matter for 




the Board of Supervisors. 




Board of Supervisors 




Budget Analyst 




129 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Items 26 and 27 Files 98-1812 and 98-1813 

Items: File 98-1812: Ordinance amending Article 12-A, Part III 

of the Municipal Code (Revenue and Finance Business 
Regulations) by adding Section 906E thereto, creating a 
$500 Payroll Expense Tax Credit to businesses for any 
taxable year ending within a fiscal year of the City 
immediately following a fiscal year for which the City has 
surplus business tax revenue from the Employer's Payroll 
Tax and Gross Receipts Tax. 

File 98-1813: Ordinance amending Article 12-B, Part III 
of the Municipal Code (Revenue and Finance Business 
Regulations) by adding Section 1005.9 thereto, creating a 
$500 Business (Gross Receipts) Tax Credit to businesses 
for any taxable year ending within a fiscal year of the City 
immediately following a fiscal year for which the City has 
surplus business tax revenue from the Employer's Payroll 
Tax and Gross Receipts Tax. 

Description: Article 12-A of the Municipal Code is known as the 

"Payroll Expense Tax Ordinance" and is the section of the 
Administrative Code that relates to the Employer's 
Payroll Tax. Article 12-B is known as the "Business Tax 
Ordinance" and is the section of the Administrative Code 
that relates to the Gross Receipts Tax. San Francisco 
businesses currently pay the City either the Payroll Tax 
or the Gross Receipts Tax, whichever results in the higher 
tax liability. 

File 98-1812 : This proposed ordinance, would add Section 
906E, to the Municipal Code to create a $500 Payroll Tax 
Credit for any business that has a Payroll Tax liability of 
$2,500 or more for any taxable year ending within a fiscal 
year immediately following a fiscal year in which the City 
has surplus Business Tax Revenue; provided that in no 
event shall the Tax Credit pursuant to this Section reduce 
a business taxpayer's liability for such tax to an amount 
less than zero. 

File 98-1813: This proposed ordinance, would add Section 
1005.9 to the Municipal Code (Revenue and Finance 
Business Regulations) to create a $500 Business Tax 
Credit, for any business that has a Gross Receipts Tax 

BOARD OF SUPERVISORS 
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Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

liability of $2,500 or more for any taxable year ending 
within a fiscal year of the City immediately following a 
fiscal year in which the City has surplus Business Tax 
Revenue; provided that in no event shall the Tax Credit 
pursuant to this Section reduce a taxpayer's liability for 
such tax to an amount less than zero. 

The Controller would determine that the City has Surplus 
Business Tax Revenue if and only if the Actual Business 
Tax Revenue (Payroll Tax and Gross Receipts Tax 
revenues) for such fiscal year exceeds the " Anticipated 
Business Tax Revenue " (see below for definition of 
Anticipated Business Tax Revenue). 

Actual Business Tax Revenue is defined as the aggregate 
amount of Business Tax revenue collected (Payroll Tax 
and Gross Receipts Tax revenues) less the amount of such 
revenue for such year resulting solely from tax rate 
increases in such year. 

Anticipated Business Tax Revenue is an amount equal to 
the product of the Actual Business Tax Revenue for the 
fiscal year immediately preceding such fiscal year, 
multiplied by 1.075 or 107.5 percent. By setting the 
Anticipated Business Tax Revenue at a level equal to 
107.5 percent of the Actual Business Tax Revenue, the 
proposed ordinances allow for natural growth in annual 
Business Tax revenues, which generally occurs to some 
extent every year, prior to declaring a Business Tax 
"surplus" for purposes of granting the Surplus Business 
Tax Revenue Credit. 

In other words, a $500 Tax Credit cannot be granted 
unless Business Tax Revenue actually collected in a 
Fiscal Year exceeds 1.075 times actual Business Tax 
Revenues collected in the previous Fiscal Year. 

Comments: 1. If approved, this proposed ordinance would grant the 

subject proposed Tax Credits in taxable years ending after 
1997. The Controller would determine if the City has 
Surplus Business (Payroll and Gross Receipts) Tax 
Revenues on the first business day of September, 
following the close of such fiscal year. For FY 1997-98, the 



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Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Controller would have to make his determination on or 
before December 31, 1998. 

2. According to Mr. Richard Sullivan, Tax Collector, 
there are presently 7,483 businesses that have either a 
Payroll Tax or Gross Receipts Tax liability of $2,500 
annually or more. Therefore, in Fiscal Years in which 
Business Tax Revenue exceeds Anticipated Business Tax 
Revenue (previous Fiscal Year actual Business Tax 
Revenue multiplied by 1.075), granting a $500 Tax Credit 
to each business would represent a reduction of General 
Fund Revenue in the amount of $3,741,500. 

3. According to Mr. John Madden, Chief Assistant 
Controller, the accrual accounting method employed by 
the City for Business Tax Revenue will result in a 
compounded reduction in revenues to the City as a result 
of the proposed Tax Credit in its first year of 
implementation (FY 1998-99). The first year impact of 
this proposed Tax Credit would therefore be one and one- 
half times the annual impact of $3,741,500, or $5,612,250. 
The estimated annual impact for years following the first 
year would be $3,741,500 for each Fiscal Year in which 
Actual Business Tax Revenue exceeds Anticipated 
Business Tax Revenue. 



Recommendation: Approval of these proposed ordinances is a policy matter 

for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

132 






Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

Items 28 and 29 - Files 98-1844 and 98-1845 

Items: File 98-1844: Resolution declaring the intention of the 

Board of Supervisors to establish a Property and 
Business Improvement District to be known as the 
Union Square Business Improvement District, for 
purposes of ordering the levy and collection of a multi- 
year assessment and setting a time and place for a 
public hearing. 

File 98-1845: Resolution establishing ballot procedures 
governing ballots cast by property owners of property 
located within the boundaries of the proposed Union 
Square Business Improvement District. 

Description: Proposition 218, approved by the California voters on 

November 6, 1996, which became part of the 
California Constitution (Articles XIIIC and XIIID) 
authorizes cities to establish Property and Business 
Improvement Districts for the purpose of levying 
assessments on real property for certain purposes. 

The proposed resolution (File 98-1844) would declare 
the Board of Supervisors intent to establish a Property 
and Business Improvement District to be named the 
Union Square Business Improvement District located 
in an approximately ten block area surrounding Union 
Square. Attachment 1 contains a map of the proposed 
District boundaries. 

The proposed resolution would also require the levy 
and collection of assessments for the next five fiscal 
years from July 1, 1999 through June 30, 2004 for the 
costs of establishing and maintaining the District, 
subject to approval by a majority of the property 
owners in the District. The proposed resolution also 
sets a public hearing date of January 25, 1999 at 3 
p.m. for the Board of Supervisors to consider this 
matter. 

The purpose of establishing this District and making 
the related assessments is to provide additional 
services, such as safety and maintenance, to 
supplement those services provided by the City. 
Specifically, the proposed Union Square Business 

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BUDGET ANALYST 

133 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



Improvement District will pay for (a) increased 
sidewalk sweeping and steam cleaning, (b) improved 
trash, graffiti removal and a painting crew, (c) 
increased public safety with one Police Officer and four 
uniformed Community Services Ambassadors, who are 
unarmed and have no special police powers, but who 
are trained public safety personnel who would be used 
to provide citizen assistance and referral and (d) 
improved community and information services for 
visitors at an estimated cost of approximately 
$967,081 annually. Attachment 2, as provided in the 
Union Square Business Improvement District Plan, 
contains a detailed budget to support the estimated 
annual costs of $967,081. 

Each commercial property owner within the District 
would be charged at an annual assessment rate of $60 
per linear foot, or $5 per linear foot per month, based 
on the number of square feet of property sidewalk 
frontage. According to the Union Square Business 
Improvement District Plan, since the District's 
services are aimed at providing enhanced public safety 
and maintenance on the street, using the linear street 
frontage was determined to be a reasonable method for 
assigning service costs based on the relative benefit 
each parcel receives from these services. According to 
the Plan, there are 91 parcels of property, with 65 
commercial property owners located within the 
proposed Business Improvement District. Proi 
zoned exclusively for residential use would not be 
subject to the proposed assessments, of which there 
are none within the proposed District. The proposed 
assessments to each commercial property within the 
District would appear as a separate line item on each 
commercial property owner's Property Tax bills sent 
by the City's Tax Collector's Office. 

The calculation for the annual assessment to each 
property owner of $60 per linear foot ($5 per month) is 
based on a total of 12,784.695 linear frontage sidewalk 
property. The total estimated annual amount to be 
collected through the assessments on the Union 
Square Business Improvement District property 
owners is $767,081 (12,784.695 linear feet x S60 per 
linear foot). This leaves a shortfall of $200,000 

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BUDGET ANALYST 

134 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

annually ($967,081 budget less $767,081 from 
assessments), which, according to the Union Square 
Business Improvement District Plan, is to be provided 
from the City (See Comment No. 8 for additional 
details). 

The proposed resolution (File 98-1845) establishes the 
specific ballot procedures for casting ballots by the 
property owners of the Union Square Business 
Improvement District. These procedures establish the 
Clerk of the Board of Supervisors as responsible for 
the content and conduct of the ballot. 

Comments: 1. The City Center Partnership, a non-profit 

organization, consisting of approximately 35 members 
who are primarily merchants within the proposed 
Union Square Business Improvement District, has 
been providing some of the proposed safety and street 
sweeper services for the past two to three years. 
According to Ms. Linda Mjellem, of the Union Square 
Association and the City Center Partnership, members 
of the City Center Partnership paid voluntary 
contributions totaling approximately $240,000 
annually to support the safety and street sweeper 
services, which were provided by both employees hired 
by the City Center Partnership and on a contract basis 
to outside vendors. Ms. Karin Flood, formerly of the 
City Center Partnership, reports that the current 
services are provided on a contract basis. Ms. Flood 
reports that once the Business Improvement District is 
created, it is anticipated that the District will hire a 
managing Director, who will be responsible for 
overseeing the proposed services, through either a 
contract or employee basis. 

2. In accordance with the proposed resolution (File 98- 
1844), the Board of Supervisors would also approve the 
Union Square Business Improvement District Plan, 
which was prepared by Ms. Flood, with assistance 
from a consultant in October of 1998. 

This Plan contains the service plan for the District and 
discusses the specific details of the (1) maintenance 
program, (2) public safety enhancements and (3) 
community relations activities to be included. For 

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BUDGET ANALYST 

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Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

example, the Plan states that the District intends to 
hire sanitation workers through a referral program 
that would benefit the City's homeless community and 
that the focus of the Community Services 
Ambassadors would be crime deterrence not 
enforcement. In addition, the detailed budget, the 
recommended composition and appointments for the 
Advisor}' Board (See Comment No. 13) and the 
assessment methodology are included in the Plan. As 
discussed above, a $200,000 annual contribution by 
the City is also included in this Plan. The Plan would 
be approved by the proposed resolution (File 98-1844), 
although the proposed resolution does not reference 
the inclusion of this $200,000 annual City 
contribution. The $200,000 from City funds would be 
subject to approval by the Board of Supervisors. 

3. According to the Plan, these City monies would go 
toward the cost of steam cleaning the entire Business 
District. This $200,000 annual contribution represents 
approximately 21 percent of the proposed total annual 
budget of $967,081 for the Union Square Business 
Improvement District. Over a five year period, which 
is the life of the proposed Improvement District, this 
$200,000 annual City contribution would cost the City 
$1,000,000. 

4. Mr. David Greenburg of the City Attorney's Office 
reports that in accordance with Proposition 218, 
property owners within a business improvement 
district can only be assessed for the costs of those 
services that each property is expected to derive from 
the improvement district. According to Mr. Greenburg, 
if the benefit of the improvement district extends 
beyond the boundaries of the property, or there are 
general benefits to properties or parties outside the 
district, the individual property owners within the 
district cannot be assessed such costs. The costs for 
such general benefits or services must come from 
another source. Mr. Greenburg further reports that 
such other sources could be from outside grants, 
private donations, gifts, or government contributions. 
Under the proposed Union Square Business 
Improvement District Plan, such other funds, which 
are estimated at $200,000 annually, are proposed to 

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BUDGET ANALYST 

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Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



come solely from the City and County of San 
Francisco. 

5. A detailed engineer's report is required to be 
prepared prior to the creation of a business 
improvement district, in accordance with Proposition 
218, in order to identify the specific benefits to be 
derived by the properties to be assessed, the amounts 
to be levied and to identify the costs of the general 
benefits to be derived from the improvement district. 
An engineer's report was recently prepared by Edward 
V. Henning & Associates, for the proposed Union 
Square Business Improvement District. This report 
states that "general benefits within a given district 
typically vary from 5-25% of the total costs" and using 
empirical data, "a focused range for general benefits 
from 15-25% is extrapolated". 

6. As previously noted, the Union Square 
Improvement District Plan, which contained a 
$200,000 annual revenue source to be allocated from 
the City represents approximately 21 percent of the 
District's proposed annual budget of $967,081. The 
engineer's report states that "a specific value of 21% is 
assigned to the general benefit portion of the total 
estimated program costs" for the Union Square 
Business Improvement District. It should also be noted 
however, that this engineer's report states that if the 
City's annual $200,000 contribution is not 
appropriated in the four subsequent years, these 
revenues can be offset by the previous three years of 
allocations of approximately $240,000 per year, which 
were contributed through the City Center Partnership. 
In other words, the City would not have to put up the 
$200,000 annual contributions in subsequent 3 ? ears to 
provide the designated general benefits, as identified 
b} 7 this engineer's report. 

7. It should also be noted that Proposition 218 does not 
exempt government property from paying benefit 
assessments. The City and County of San Francisco 
owns the Ellis O'Farrell Parking Garage at 123 
O'Farrell Street, and the San Francisco Unified School 
District owns the San Francisco Center, at 865 Market 
Street, in which Nordstrom is located, within the 

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BUDGET ANALYST 

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Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



proposed District. According to the draft engineer's 
report, the City would be assessed an annual 
assessment of $14,700 the first year for this property, 
in addition to the proposed $200,000 annual 
contribution. Ms. Mjellem reports that the San 
Francisco Center, the main tenant, will pay the 
Unified School District's assessments on the property, 
which are estimated to be $33,000 the first year. 

8. According to the Office of the Sponsor of the 
proposed legislation, if the proposed Union Square 
Business Improvement District is created, depending 
on the timing for the creation of the District and the 
need for City funds, either a supplemental 
appropriation would be prepared or the funds would be 
included in the FY 1999-2000 budget to provide the 
necessary $200,000 to the Improvement District. The 
Office of the Sponsor also reports that in the 
subsequent four years, such funds would be included 
in the City's annual budget. According to both the 
Sponsor's Office and Ms. Flood, it is intended that the 
City would provide the $200,000 of funds to the 
District, to be used for the necessary steam cleaning 
services, rather than have the City directly provide 
such additional services to the District. 

Mr. John Busher of the Department of Public Works 
reports that DPW currently provides approximately 60 
to 80 labor hours per week for all cleaning services, 
including approximately eight hours per week for 
steam cleaning, to the Union Square Improvement 
District area, at an estimated total annual cost of 
approximately $140,000 to $180,000 per year. Thus, 
the proposed City contribution of $200,000 annually 
would more than double the current level of 
expenditure provided by the City to the Union Square 
Improvement District for all general cleaning services. 

9. According to Ms. Flood, the one Police Officer to be 
hired by the Improvement District, would be paid on 
an overtime basis by the Business Improvement 
District. Ms. Flood notes that it is not likely that one 
Police Officer would be dedicated to this assignment, 
but rather that this effort will involve several Police 
Officer's participation Ms. Flood reports that since the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

138 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 



boundaries of tbe proposed Business Improvement 
District overlap three Police District Stations, the 
District would work with the three Police District 
Stations to coordinate this additional level of Police 
effort. 

10. The proposed resolution (File 98-1844) states that 
the formation of the Union Square Business 
Improvement District will not affect the City's policy 
to continue to provide the same level of services 
(including Department of Public Works and Police 
services) to the areas encompassed by the District, at 
the same level as other comparable areas for which the 
City provides such services. Attachment 3 identifies 
the existing City services and the proposed enhanced 
Union Square Business Improvement District services 
that would be provided. However, if the City, through 
the Business Improvement District, provides an 
additional $200,000 annually, or over $1,000,000 over 
the next five years, the level of City services to the 
Business Improvement District, would actually 
increase. 

11. Furthermore, since the Union Square Business 
Improvement District is the first Business 
Improvement District that is proposed to be created in 
the City, and the City, under the proposed Plan, would 
contribute $200,000 annually to finance the District 
services of 21 percent of total estimated annual costs, 
the Board of Supervisors may want to consider what 
the City's policy will be if other areas of the City want 
to create a Business Improvement District, and 
similarly request funds from the City. 

12. In order to form the proposed Union Square 
Business Improvement District, petitions must be 
received from commercial property owners 
representing more than 50 percent of the total 
assessments in the District. In accordance with State 
Law that authorizes cities to create such Improvement 
Districts, the proposed Union Square Business 
Improvement District would continue for five years, 
after which the petition process would be required to 
be repeated, if the District was to continue. Under the 
proposed plan, it is anticipated that the first 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 

assessments would be collected m FY 1999-2000. .After 
the first year, the annual assessments may increase, 
based on the Bay Area Consumer Price Index (CPI), 
not to exceed three percent annually. Ms. Mjellem 
reports that the City's contribution would remain 
constant at $200,000 per year. 

13. An Advisory Board consisting of 13 Union Square 
property and business owners would manage, without 
compensation, the proposed Business Improvement 
District. The Board of Supervisors would be 
responsible for appointing this Advisory Board, for five 
year terms, prior to the establishment of the District. 
This Advisory Board would be responsible for 
preparing and reviewing the budget and annual 
service plan for the District. A proposed resolution 
(File 98-1927) to establish this Advisory Board is 
currently assigned under the 30-day rule to the 
Finance Committee. In addition, an Operating Board 
would be elected by the property owners in the 
District, which would be responsible for supervising 
the District's day-to-day operations. 

14. The proposed resolution (File 98-1845) identifies 
specific ballot procedures for the creation of the Union 
Square Business Improvement District and establishes 
the Clerk of the Board of Supervisors as the party 
responsible for the content and conduct of this ballot. 
Ms. Gloria Young, the Clerk of the Board of 
Supervisors, reports that conducting the ballot 
procedures for the creation of the proposed Union 
Square Business Improvement District is anticipated 
to cost less than $500 in direct expenses, in addition to 
various existing staff positions who would assist in 
this effort. According to Ms. Young, the Clerk of the 
Board's FY" 1998-99 budget can absorb these proposed 
costs and staffing assignments. 

Recommendations: Approval of the proposed resolutions are policy 
matters for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

140 



Memo to Finance Committee 

December 2, 1998 Finance Committee Meeting 




Harvey M. Rose 



cc: Supervisor Teng 
President Kaufman 
Supervisor Newsom 
Supervisor Ammiano 
Supervisor Bierman 
Supervisor Brown 
Supervisor Katz 
Supervisor Leno 
Supervisor Medina 
Supervisor Yaki 
Supervisor Yee 
Clerk of the Board 
Controller 
Gail Feldman 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



141 



Union Square Business Improvement District Plan - October. 1996 



Attachment 1 



BOUNDARY MAP 



tn 



a 






n 



EB 





r 



w 




1 




i rus document mav not oe renroaucea without the autnonzaaon or 

The City Center Partnership 

5. 



142 



; 1 1—25—98 ; T 2 : 41PM ', 415B827124-* 415 252 D461!# 1 

^ Attachment 2 
Union Square Business improvement District Plan - October, 1998 ° 

Union Square Business Improvement District 1999 - 2000 Operating 
Budget (the budget will be approximately the same for each of the next four 
years through 2004) 

BUDGET SUMMARY 

MAINTENANCE 5423,220.00 

PUBLIC SAFETY $400,5 1 1 .00 

MANAGEMENT & OPERATIONS $ 126,850.00 

CONTINGENCY $16.500.00 

TOTAL BUDGET $967,081.00 

DETATT ED BUDGET ANALYSIS 

MAINTENANCE 

Personnel 

Maintenance Supervisor $20,800.00 

Sidewalk Sweeping Crew $105,120.00 

Graffiti Scrubber $17,680.00 

Medical/Dental Benefits for full lime staff $16,800.00 

Payroll Taxes & Worker's Comp. @25% for above S35.900.00 

:rsonnel 

otal Personnel $196,300.00 






Equipment 

Garbage bags, gloves, misc. $3,000.00 
supplies 

Uniforms $3,000.00 

Laundry $2,000.00 

Cleaning solutions, paint, etc. $2,000.00 

Equipment purchases (Pressure washer) $2,420.00 

Maintenance training $2,000.00 

Liability insurance $12.500.00 

Total Eaulnment $26,920.00 

Steam 

Cleanin g $200.000 

TOTAL MAINTENANCE $423,220.00 



This document may not be reproaucec without the autnanzatlan of 
The City Center Partnership 

12. 



143 



SENT BY: : 1 1—25—98 ; 12 : 10PM i 41 5SB27 * 2A- 4:5 2;2 046", ;s 4 

Attachment 2 
Union Square BmJBtM Improvement DxKnet Pian - October, 1998 



PUBLIC SAFETY 

Personnel 

1 1 OB PoUce Officer S84.5 11.00 

Ambassador Supervisor S3 1 .200.00 

Lead Ambassador S24.960.00 

Public Safety Ambassadors 1 3 1 ,400.00 

Dispatcher S25.O00.OO 

Medical/Dental benefits for full time staff S16, 800.00 

Payroll Taxes &. Worker's Comp. @25% $53.140 00 
(Ambassadors/Dispatcher) 

Total Personnel $367,011.00 

Equipment 

Radio equipment S3.000.00 

Misc. safety supplies S2.000.00 

Uniforms S8.000.00 

Ambassador training S6.000.00 

Hiring costs (Background checks, drug tests) S2.000.00 

Liability insurance S12.500.OQ 

Total Equipment $33,500.00 

TOTAL PUBLIC SAFETY $400,511.00 



This document may not oe reproduced witnout n autrtanzanon a 
The Gty Center Partnership 

13. 



144 



: 1 -1—25—88 ; T 2 : ATPM \ 4158827124* 415 252 0461 ;« 2 

Attachment 2 
Unicoi Square Business Improvement District Fian - October, 1998 



Pase 3 of 3 



MANAGEMENT & 
OPERATIONS 

Personnel 

Managing Director S55,000.00 

Payroll Taxes & Worker's Come @ S13.750.0O 

25% 

Total Personnel $68,750.00 

Operations 

Rent $22,000.00 

Office supplies, stationary, etc. $6,000.00 

Telephone $3,600.00 

Postage -■ $1,500.00 

Meeting expenses $2,000.00 

Conferences and dues $1,500.00 

Legal fees $5,000.00 

Bookkeeper/Payroll service 510,000.00 

Accounting and audit $5,000.00 

Office insurance $1.500.00 

Total Operations $58,100.00 

TOTAL MANAGEMENT & $126,850.00 

OPERATIONS 

CONTINGENCY 

Office Equipment $6,000.00 

Office Furniture $2,500.00 

Office Supplies $3,000.00 

City Collection Fees S5.000.00 

TOTAL CONTINGENCY $16,500.00 

TOTAL BUDGET: $967,081.00 



This document may not M reproduced without tne authorization of 
'The City Center Partnership 

14. 



145 



Union Square Busmen Improvement District Plan - Octol • 



Attachment 3 



-age 



I of i 



VIII. CONTINUATION OF CITY SERVICES 



Throughout the process to establish the Union Square BID. business and pre : 
owners have voiced concerns that the City of San Francisco maintain existing services at 
verifiable "baseline" service levels. A formal base level of service policy ensures that 
existing Gtv services are enhanced, not replaced. By adopting this plan, the Board of 
Supervisors will confirm its intention to ensure a baseline level of service equivalent to that 
being provided in similar areas of the ciry. 



Maintenance 
Existing Citv Services 



Frequency fl Enhanced BID Services Frequency 



Mechanical Street Swee 



2-1 cavs-'week 



Street Rushing (supplemental service 2-3 days/week 
per health need' 



Graffiti Removal Services 

Street Tree Maintenance 
Manual Sweeping 



Public Luier Receptacles 

• Emptying 

• Repairs-'maintenancc 
- Cleaning /washing 

Code Enforcement 

(environmental, safety, cleanliness. 

and litter laws) 

Market Street Sidewalk Steam 
Cleaning 



provide.: b • 
inspectors or on 
request 

even fe» yean 



V-orsiare Crew, 
once-'day. 3-6 
davs/weel 



; -;*/d3> 7 days 

/week 
as needed 
as needed 

A-6 persons, city 
wide, ongoing as 
required 

•ixj'vear wnen 
available 



Manual Sidewalk Sweeping 



~ persons 
9am to 9pm 
davs/week 



Special Teams I person 

Graffiti removal, painting, and 8 hrsvday 
on-call maintenance 

Liter Recep'.j. - 
■ Emptying 

Repairv maintenance 
Cieanine/wasmne 



Power Vvash Sidewalks 

■ entire dis:-.r 



5 days. • -- • 

; s v as 

as net 

. i- week or as 



This document mav not ce retjrocucea witnout tne authonzat 
The Citv Center Partnership 
20. 



146 



Union Scuare Business Improvement District Plan - October. 1996 



Attachment 3 
Pase 2 of 2 



Safety 

Existing Citv Service 



jencieri oin | ?<q- Pr.r.-» 

Bounces Geary , Ellis. Powell l0 S[0 cK.on 

■ 1-2 beat officers - 6am ,o 9pm. 4 -7 davs/weck 

2 Dea; officers - 9pm to 2am. 7 cays/week 

' 1 radio car ri-2 officers, - 24 hrs/day. 7 dayyweek 

Central Stppr.^ 

Bouncanes: Sune, to Geary. P w C ll I0 Siockton 

' 1-2 plain clothed units - 6am to 6pm. 7days/we=k 

\ ! bcaI offlc = r - 8am io 6pm . 7 davs/week 

- park patrol officers - 7 am ,o 9pm . 7 davs/week 

- radio cars (1-2 officers each ,- 24 hrs/dav 



Southern Pnlicp St a ,.» n 

Boundanes: Halhdie PB--. r>~ n r - 

Unit block of Powl M^ke r o Tumaround - 

u -'•■ '^arke:. Gram to Powell. 

• 1 beat officer - 8am-6pm. 4 days/wee. 

'^e^r 8 r" foon - "-i--M-a 

•^^ofTicers^p..^.,.,^^^ 

"MSet^: r- :4h ^™^ 



Enhanced BID Services 



Boundary Enure District 



■ 4 Community Service Amoassaaors 
equipped with radios 

3 District patrolling zones 
9am to 9pm 
7 days/week 

Additional poiice officer 
3pm to 9pm 

5 davs/week 



' "" 0OCTime ™ may- not oe reproduces without the authorization or 
The Citv Center Partnership 
->1 



).25 




City and County of San Francisco 

Meeting Agenda 

finance Committee 

Members: Supervisors Mabel Teng, Barbara Kaufman, Gavin Newsom 
Clerk: Joni Blanchard 



Veterans Building 

401 Van Ness Avenue, 

Room 308 

San Francisco, CA 

94102-4532 



Wednesday, December 09, 1998 



12:59 PM 



Special Meeting 



Veterans Building 

401 Van Ness Ave., Room 410 

San Francisco, CA 94102 



982041 [Muni Fare Suspension] Supervisor Newsom 

Ordinance approving the suspension of fares on Muni revenue vehicles from 8 P.M. on December 

31, 1998 to 3 A.M. on January 1, 1999. t f^jJl /xjt/'lij 

1277/98, RECEIVED AND ASSIGNED to Finance Committee. 



ADJOURNMENT 



998 



IMPORTANT INFORMATION 

NOTE: Persons unable to attend the meeting may submit to the City, by the time the proceeding 
begins, written comments regarding the agenda items above. These comments will be made a part of 
the official public record and shall be brought to the attention of the Board of Supervisors. Any 
written comments should be sent to Committee Clerk, Finance Committee, San Francisco Board of 
Supervisors, 401 Van Ness Avenue, Room 308, San Francisco, California 94102 by 5:00 p.m. on the 
day prior to the hearing. Comments which cannot be delivered to the committee clerk by that time 
may be taken directly to the hearing at the location above. 



City and County of San Francisco 



Printed at 12:4^ PM on 11"V8 



Finance Committee Meeting Agenda Wednetday, December 09, 1991 



Disability Access 



Both the Committee Room (Room 410) and the Chamber (Room 404) are wheelchair accessible. The closest 

accessible BART Station is Civic Center, four blocks from the Veterans Building. Accessible MUNI lines serving this 

location are: #42 Downtown Loop, the #71 Haight/Noriega, the F line to Market and Van Ness and the METRO 

stations at Van Ness and Market and at Civic Center. For more information about MUNI accessible services, call 923- 

6142. 

There is accessible parking in the vicinity of the Veterans Building adjacent to Davies Hall and the War Memorial 

Complex. 

Assitive listening devices are available for use in the Meeting Room and the Board Chamber. A device can be 
borrowed prior to or during a meeting. Borrower identification is required and must be held by Room 308 staff. 

The following services are available on request 48 hours prior to the meeting or hearing: 

For American sign language interpreters or the use of a reader during a meeting, contact Violeta Mosuela at 
(415)554-7704. 

For a large print copy of an agenda, contact Moe Vazquez at (415) 554-4909 

In order to assist the City's efforts to accommodate persons with severe allergies, environmental illness, multiple 
chemical sensitivity or related disabilities, attendees at public meetings are reminded that other attendees may be 
sensitive to various chemical based products. Please help the City to accommodate these individuals. 

Government's duty is to serve the public, reaching its decisions in full view of the public. Commissions, boards, 
councils and other agencies of the City and County exist to conduct the people's business. The Sunshine Ordinance 
assures that deliberations are conducted before the people and that City operations are open to the people's review. For 
more information on your rights under the Sunshine Ordinance (Chapter 67 of the San Francisco Administrative Code) 
or to report a violation of the ordinance, contact the Sunshine Ordinance Task Force at 554-485 1 . 



FINANCE COMMITTEE 

S.F. BOARD OF SUPERVISORS 

VETERANS BUILDING 

401 VAN NESS AVENUE, ROOM 308 

SAN FRANCISCO, CA 94102 

IMPORTANT HEARING NOTICE!!! 




City and County of^San Francisco JSEXEZL. 

. Room 308 

Meeting Agenda San Francisco, CA 

finance Committee 

Members: Supervisors Mabel Teng, Barbara Kaufman, Gavin Newsom nrf 
Clerk: Joni Blanchard 



Wednesday, December 09, 1998 



X5 



1:00 PM 



Regular Meeting 



Veterans Building 

401 Van Ness Ave., Room 410 

San Francisco, CA 94102 



)/n 



CONSENT AGENDA 



All matters listed hereunder constitute a Consent Agenda, are considered to be routine and will be 
acted upon by a single roll call vote of the Committee. There will be no separate discussion of these 
items unless a member of the Committee so requests, in which event the matter shall be removed from 
the Consent Agenda and considered as a separate item. 






981928 [Reserved Funds, Fire Department] 

Hearing to consider release of reserved funds, Fire Department (1992 Fire Protection Bond 
proceeds), in the amount of $305,000, for the purpose of funding the construction contract for Fire 
Station No. 5 renovations. (Department of Public Works) 

1 1/16/98, RECEIVED AND ASSIGNED to Finance Committee. 



981924 [Grant - Federal Funds] 

Resolution authorizing Airport Commission to accept and expend grant of $1 1,458.450.00 from 
Federal Aviation Administration for assistance in improvements at the Airport (A. I. P. 13: 
Application No. 98-01). (Airport Commission) 

1 1/12/98, RECEIVED AND ASSIGNED to Finance Committee. 



981951 [Emergency Repair, Oakhurst Lane Sewer] 

Resolution approving the expenditure of funds for the emergency work to repair the structurally 
inadequate sewer on Oakhurst Lane from Warren Drive to Crestmont Drive - 572,710. (Public 
Utilities Commission) 

1 1/15/98. RECEIVED AND ASSIGNED to Finance Committee. 



981953 [Lease of Property, 1760 Ocean Avenue] 

Resolution authorizing a lease of real property at 1760 Ocean Avenue, San Francisco, for OMI 
Family Center of the Mental Health Division of the Department of Public Health. (Real Estate 
Department) 

1 1/18/98, RECEIVED AND ASSIGNED to Finance Committee 






City and County of San Francisco 



Printed at 10:59 AM on 1 13,18 



Finance Committee 



Meeting Agenda 



Hedneiday, December 09, 1998 



REGULAR AGENDA 



982015 [Amendment No. 2 to MOU, Municipal Executives Association] 

Ordinance implementing the provisions of an amendment to the Memorandum of Understanding 
between the Municipal Executives Association for Bargaining Units M, EM, and MSA, and the City 
and County of San Francisco to amend Appendix E of the Memorandum of Understanding by adding 
Classes 1682 and 5156 and the titles of Controller and Division Manager of suburban operations to 
the list to correct a clerical omission, and to amend Appendix F of the Memorandum of 
Understanding by adding Class 9278 and the title of Director of Airports to the list to correct a 
clerical omission. (Department of Human Resources) 

1 1/25/98, RECEIVED AND ASSIGNED to Finance Committee 



981876 [Amendment to Municipal Executives Association MOU] 

Ordinance implementing the provisions of an amendment to the Memorandum of Understanding 
between the Municipal Executive Association and the City and County of San Francisco pursuant to 
Article 111.E.3. Subsections (B.l ) and (E) of the Memorandum of Understanding, to provide internal 
adjustments for the time period beginning July 1, 1998 through June 30. 2001 . (Department of 
Human Services) 

1 1/4/98, RECEIVED AND ASSIGNED to Finance Committee 

12/2/98, CONTINUED Heard in Committee Connnued to December 9, 1998 meeting 



981707 [Gift Certificates for Payment for Parking and City Garages) Supervisor Kaufman 

Ordinance amending Administrative Code by amending Section 2 A. 1 80 to grant authority to the 
Department of Parking and Traffic to sell gift certificates for payment for parking at city garages. 

(Amends Section 2A.180.) 

10/13/98, ASSIGNED UNDER 30 DAY RULE to Finance Comminee, expires on 11/13/1998. 

981811 [Grievance Settlement Authorit> | Supervisor Kaufman 

Ordinance amending Administrative Code Section 10.25-12 to increase the settlement limitations for 
individual grievance claims to S50.000 per claimant and S50.000 for class grievance claims 

(Amends Section 10.25-12.) 

10/26/98, RECEIVED AND ASSIGNED to Finance Comminee. 



City and County of San Francisco 



Printed at 10:59 AM on 1Z3VS 



Finance Committee 



Meeting Agenda 



Wednesday. December 09, 1998 



9. 981848 [Assessment Appeals Board Membership] Supervisor Kaufman 

Ordinance amending Administrative Code Sections 2B1 through 2B.8 and 2B.10 through 2B.14 to 
increase the number of Assessment Appeals Board members, to establish eligibility requirements for 
Assessment Appeals Board members, to establish criteria for selection of Assessment Appeals Board 
panels and hearing officers, to establish guidelines for joint meetings of the Assessment Appeals 
Boards, and to make nonsubstantive clarifying revisions. 

(Amends Sections 2B1 through 2B.8 and 2B.10 through 2B.14.) 

1 1/2/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 12/2/1998. 

10. 981868 [Airport Lease Agreement for Federal Aviation Administration 

(FAA)] 

Resolution approving lease agreement for operation of Runway End Identification Lights (REIL), 
RWY OIL between the United States of America and the City and County of San Francisco, acting 
by and through its Airport Commission. (Airport Commission) 

1 1/3/98, RECEIVED AND ASSIGNED to Finance Committee. 

11. 981869 [Airport Lease Agreement for Federal Aviation Administration 

(FAA)] 

Resolution approving lease agreement for Precision Approach Path Indicator (PAPI) between the 
United States of America and the City and County of San Francisco, acting by and through its 
Airport Commission. (Airport Commission) 

1 1/3/98, RECEIVED AND ASSIGNED to Finance Committee. 

12. 981958 [Appropriation, Airport] 

Ordinance appropriating S220,000,000, Airport Commission, of San Francisco International Airport 
Bond Proceeds, for the construction of infrastructure projects for fiscal year 1998-1999. (Controller) 

1 1/18/98, RECEIVED AND ASSIGNED to Finance Committee. 

13. 981873 [Appropriation, Port Commission] 

Ordinance appropriating 56.434,954, Port Commission, from San Francisco Harbor Operating Fund 
Balance to fund the cost of various capital improvement projects (lease property improvements, 
cargo berth dredging, preventive maintenance. Ferry building and terminal projects. PacBell 
shoreline stabilization) for fiscal year 1998-1999. (Controller) 

(Fiscal impact.) 

1 1/4/98, RECEIVED AND ASSIGNED to Finance Committee. 

14. 981909 [Sale of Real Property Easement Rights] 

Resolution authorizing the sale of a 10-foot wide strip of Public Utilities Commission (PUC) surplus 
property easement rights identified as the Newark to Hayward Aqueduct located in Newark. Fremont. 
and Union City', Alameda County, California to the City' of Hayward. (Real Estate Department) 

1 1/6/98, RECEIVED AND ASSIGNED to Finance Committee. 



City and County of San Francisco 



Printed at 10:59. 4.\( on 113/98 



Finance Committee 



Meeting Agenda 



Wednesday, December 09, I99S 



15. 981917 [Real Property Exchange] 

Resolution approving an exchange agreement between the City and County of San Francisco and the 
Peninsula Corridor Joint Powers Board (JPB), by which the JPB will quitclaim to the City its 
easement rights in a parcel between Fifth and Sixth Streets adjacent to King Street in exchange for 
the City transferring a temporary easement to the JPB in an area encroaching King Street between 
Fourth and Fifth Streets; and adopting findings pursuant to Planning Code Section 101.1 (Real 
Estate Department) 

1 1/10/98, RECEIVED AND ASSIGNED to Finance Committee. 

16. 981923 [Golden Gate Yacht Club Lease Amendment! 

Ordmance approving the First Amendment to the lease between the City and the Golden Gate Yacht 
Club to reduce the rental rate from 10 percent to 7.5 percent of the Club's monthly gross revenue and 
reducing the lease term from 40 to 30 years. (City Attorney) 

1 1 13/98, RECEIVED AND ASSIGNED to Finance Committee. 

17. 981981 [Public Employment] Mayor 

Ordinance amending Ordmance No. 243-98 (Annual Salary Ordinance) reflecting the creation of 
58.5 positions in Department of Human Services; companion measure to File 981980. 

1 1/23/98, RECEIVED AND ASSIGNED to Finance Committee. 



18. 981980 [Appropriation. Department of Human Services| Mayor 

Ordinance appropriating SI 1.455,058 of State and Federal revenues to fund augmentation of various 
welfare programs and services, implementation of the new statewide welfare information network, 
and to provide the necessary infrastructure and administrative capacity to make these changes and for 
the creation of 58.5 positions at the Department of Human Services for fiscal year 1998-1999; 
companion measure to File 981981. 

1 1/23/98, RECEIVED AND ASSIGNED to Finance Committee 



LITIGATION 



This Committee of the Board of Supervisors may meet in closed session under the provisions of 
Government Code Section 54956.9(a) to discuss proposed settlements of the lawsuits listed below, 
these lawsuits involving the City and County of San Francisco. This motion would be made on the 
basis that discussion in open session of these proposed settlements would prejudice the position of 
the City in these lawsuits. 



19. 981974 [Tobacco Multi-State Settlement) Supervisor Kaufman 

Ordinance authorization to participate in proposed multi-state settlement of tobacco liriganon 



(Superior Court 980-864.) 

1 1/23/98, RECEIVED AND ASSIGNED to Finance Committee 



City and County of San Francisco 



Printed at 10:59 AM on 12/3/9S 



Finance Committee 



Meeting Agenda 



Wednesday, December 09, 1998 



20. 981975 [Settlement of Lawsuit] Supervisor Kaufman 

Ordinance authorizing to participate in the settlement of litigation of State of California ex rel. Stull 
against the Bank of America. 

(Superior Court 968-484.) 

1 1/23/98, RECEIVED AND ASSIGNED to Finance Committee. 



This Committee of the Board of Supervisors may find that it is in the best interests of the City not to 
disclose any information revealed in its closed session deliberations in the above items at this time 
and may move not to disclose any information at this time. 



IMPORTANT INFORMATION 

NOTE: Persons unable to attend the meeting may submit to the City, by the time the proceeding 
begins, written comments regarding the agenda items above. These comments will be made a part of 
the official public record and shall be brought to the attention of the Board of Supervisors. Any 
written comments should be sent to Committee Clerk, Finance Committee, San Francisco Board of 
Supervisors, 401 Van Ness Avenue, Room 308, San Francisco. California 94102 by 5:00 p.m. on the 
day prior to the hearing. Comments which cannot be delivered to the committee clerk by that time 
may be taken directly to the hearing at the location above. 



LEGISLATION UNDER THE 30-DAY RULE 

Rule 5.40 provides that when an ordinance or resolution is introduced which would CREATE OR 
REVISE MAJOR CITY POLICY, the committee to which the legislation is assigned shall not consider 
the legislation until at least thirty days after the date of introduction. The provisions of this rule shall 
not apply to the routine operations of the departments of the City or when a legal time limit controls 
the hearing timing. In general, the rule shall not apply to hearings to consider subject matter when 
no legislation has been presented, nor shall the rule apply to resolutions which simply URGE action 
to be taken. 



21. 981927 [Union Square Business Improvement District Advisory Board] Supervisor Kaufman 

Resolution establishing an Advisory Board to make recommendations to the Board of Supervisors on 
the expenditure of revenues derived from assessments, on the classification of properties within, and 
on the method and basis for levying assessments upon, property located within the Union Square 
Business Improvement District. 

1 1/16/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 12/16/1998. 



City and County of San Francisco 



Printed at 10:59 AM on 12/3/98 



Finance Committee Meeting Agenda H edneiday, December 09, I99S 



22. 981936 [Penalties, Late Payment of Parking Tickets] Supervisor Teng 

Ordinance amending Traffic Code by adding Section 131 to Article 7, adopting a penalty schedule 
for the late payment of parking tickets and providing that the Board of Supervisors may by resolution 
declare periods of amnesty during which late payment penalties would be forgiven upon prompt 
payment of the underlying fine. 

(Adds Section 131.) 

1 1/16/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 12 16 1998 



Watch future agendas for matters. 



City and County of San Francisco 6 Printed at 10:59 AM on 12.3/18 



Finance Committee Meeting Agenda Wednesday, December 09,1998 



Disability Access 



Both the Committee Room (Room 410) and the Chamber (Room 404) are wheelchair accessible. The closest 

accessible BART Station is Civic Center, four blocks from the Veterans Buildmg. Accessible MUNI lines serving this 

location are: #42 Downtown Loop, the #71 HaightNoriega. the F line to Market and Van Ness and the METRO 

stations at Van Ness and Market and at Civic Center. For more information about MUNI accessible services, call 923- 

6142. 

There is accessible parking in the vicinity of the Veterans Building adjacent to Davies Hall and the War Memorial 

Complex. 

Assirive listening devices are available for use in the Meeting Room and the Board Chamber. A device can be 
borrowed prior to or during a meeting. Borrower identification is required and must be held by Room 308 staff. 

The following services are available on request 48 hours prior to the meeting or hearing: 

For American sign language interpreters or the use of a reader during a meeting, contact Violeta Mosuela at 
(415) 554-7704. 

For a large print copy of an agenda, contact Moe Vazquez at (415) 554-4909. 

In order to assist the City's efforts to accommodate persons with severe allergies, environmental illness, multiple 
chemical sensitivity or related disabilities, attendees at public meetings are reminded that other attendees may be 
sensitive to various chemical based products. Please help the City to accommodate these individuals. 

Government's duty is to serve the public, reaching its decisions in full view of the public. Commissions, boards, 
councils and other agencies of the City and County exist to conduct the people's business. The Sunshine Ordinance 
assures that deliberations are conducted before the people and that City operations are open to the people's review. For 
more information on your rights under the Sunshine Ordinance (Chapter 67 of the San Francisco Ao^ministrative Code) 
or to report a violation of the ordinance, contact the Sunshine Ordinance Task Force at 554-4851. 



City and County of San Francisco Printed at 10:59 AM on 113/V8 






FINANCE COMMITTEE 

S.F. BOARD OF SUPERVISORS 

VETERANS BUILDING 

401 VAN NESS AVENUE. ROOM 308 

SAN FRANCISCO. CA 94102 

IMPORTANT HEARING NOTICE!!! 



CITY AND COUNTY 



11 




Public Library,Gov't Info. Ctr., 5 th Fir 
Attn: Susan Horn 



OF SAN FRANCISCO 



BUDGET ANALYST 

1390 Market Street. Suite 1025. San Francisco. CA 94102 (415) 554-7642 
FAX (415) 252-0461 



December 4. 1998 



TO: ^Finance Committee 

FROM: ^Budget Analyst *«*« 



KaJ^i <■' -T -A*- /II*.iMa.\ »t 



SUBJECT: pecember 9. 1998 Finance Committee Meeting 
Item 1 -File 98-1928 



DOC DEPT. 

DEC 9 1998 

PL E ARY 



Department: 
Item: 



Amount: 
Source of Funds: 

Description: 



Fire Department 



Hearing to consider release of reserved funds from 1992 
General Obligation Fire Department Improvement Bond 
Proceeds in the amount of S305.000 for the renovation of 
Fire Station No. 5. 

$305,000 

Previously appropriated 1992 General Obligation Fire 
Department Improvement Bond Funds and Interest 
Earnings. 

In November of 1992, the voters approved Proposition C, 
General Obligation 1992 Fire Department Improvement 
Bonds totaling $40,800,000 to finance improvements 
related to various Fire Department facilities. 

In November of 1996, the Board of Supervisors approved 
an ordinance appropriating $14,233,588 from these 1992 
Bond Funds for architectural and engineering services 
and construction costs in connection with the renovation 
of 20 Fire Department facilities (File 101-96-12). Because 
DPW had not selected contractors to perform the 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



renovation work for 17 of the 20 Fire Department 
facilities, the Board reserved a total of $7,864,100 
pending DPW's selection of contractors and submission of 
contract cost details. Current reserved funds are 
$5,185,841. The proposed request would authorize the 
release of $305,000 for the renovation of Fire Station No. 
5, located at 1301 Turk Street, leaving $4,880,841 on 
reserve. 

According to Peter Wong of DPW, construction work 
estimated to cost $502,726 for the renovation of Fire 
Station No. 5, consists of hazardous material abatement, 
mechanical and electrical system upgrades, increased 
disabled access in the public areas, and separate shower 
and locker facilities for male and female firefighters. 



Budget: 



DPW has submitted an Attachment detailing the budget 
for the estimated $502,726 in renovation costs, including 
subcontractor and alternate costs for Fire Station No. 5. 



Comments: 



1. Mr. Wong reports that Kin Wo Construction, Inc. was 
selected as the low bidder through an Invitation for Bids 
process, run Wo Construction's bid was $502,726. The 
four firms which bid for this contract and their bid 
amounts are as follows: 



Bidders 

Kin Wo Construction, Inc. 
Thornfeldt Construction, Inc. 
Svala Construction, Inc. 



Amount Bid 1 

$502,726 

479,000 

586,910 



LC General Engineering & Construction. Inc. 636,100 

2. The proposed request for release of reserved funds of 
$305,000 for the renovation work is $197,726 less than 
the total construction contract of $502,726. According to 
Mr. Wong, the source of the additional $197,726 would be 
previously appropriated 1992 General Obligation Fire 
Department Bond fund monies. 



1 The bid from Kin Wo Construction, Inc. was reduced by 10 percent during the City's selection 
process because of its MBE and WBE status. Kin Wo Construction's bid of S502.726. less the 10 
percent preference, or $50,273. was adjusted to $452,453, or S26.547 less than the Thornfeldt 
Construction, Inc. bid of S479.000. 

Board of Supervisors 

Budget Analyst 

2 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

Recommendation: Approve the release of reserved funds in the amount of 

$305,000. 



Board of Supervisors 
Budget Analyst 

3 



5450A - SFFD STATION 5 RENOVATION 
CONSTRUCTION CONTRACT COST BREAKDOWN 



Attachment 



Prime Contractor WBE/MBE (38.77% of Base Bid) 
Kin Wo Construction. Inc., General Contractor 



$185,598 



1. Base Bid 

Subcontractors MBE (25.30% of Base Bid)) 
D & S Associates (Plumbing) 
W. L. Electrical (Elec.) 
Kwan Wo Ironwork (Steel) 
Joe Wang (Carpeting) 



Subcontractors WBE (9.40% of Base Bid)) 
Doherty (Painting) 

Subcontractors. Non-MBE/WBE (26.53% of Base Bid)) 
Orson. Mechanical (Flashing) 
Drapery Concepts 
Inter Space (Carpentry) 

Subtotal - Base Bid Construction: 

2. Additive Alternate: 

Alternate 2 - Interior Painting /Related Work 

Subtotal: 
TOTAL CONSTRUCTION CONTRACT 



29.600 
52.000 
17.000 
22,500 



45000 



92.625 

2,465 

31,900 



S24.128 



121,100 



45.000 



126.990 
$478,598 



24.128 



$502,726 



FUNDING SOURCE: 

1. 3rd Bond Sale Appropriation - Construction Reserve 

2. Available/Approved Fund 
Total: 



$305,000 

$197,726 
$502,726 



This Request 



h: pwong\finance\5cons doc 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



Item 2 -File 98-1924 

Department: 

Item: 



Amount: 
Source of Funds: 
Project: 
Description: 



Airport 

Resolution authorizing the Airport Commission to accept 
and expend a grant of $11,458,450 from the Federal 
Aviation Administration for four airfield improvement 
projects. 

$11,458,450 

Federal Aviation Administration 

Airport Improvements Program (AIP) No. 98-01 

The proposed resolution would authorize the Airport to 
accept and expend grant funds from the FAA. to assist in 
its Airport Improvement Program (AIP). The AIP provides 
for the reimbursement by the FAA. of a portion of the cost 
of capital improvement projects. The proposed grant 
would fund 75 percent or $11,458,450 of the total project 
cost of $15,277,933. A required match, consisting of 
Airport revenues, would fund the remaining 25 percent or 
$3,819,483 for the capital improvement projects identified 
on the attached map (Attachment I) as (1) System Control 
& Data Acquisition, (2) Taxiway 'F Realignment Between 
Taxiways 'B' and 'L', (3) Taxiways A' and 'B' 
Reconstruction and Overlay, and (4) Field Lighting 
Control System Upgrade. The $15,277,933 total cost of 
the four capital improvement projects would be expended 
as follows: 

System Control and Data Acquisition ($1.960.000) 

This project, with a total cost of $1,960,000 of which 
$1,470,000 is to be funded by the FAA grant, will provide 
for a computerized data feedback system designed to 
augment and enhance the Airport's mainline electrical 
power distribution system, which includes the airfield 
lighting system. The purpose of this project is to establish 
better control of scheduled transfers of electrical power 
between the Airport's main circuits and therefore, achieve 
better coordination and emergency response. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

5 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



Taxiwav 'F" Realignment Between Taxiwavs 'B' and 
'V (S6.250.000) 

This project, with a total cost of $6,250,000 of which 
$4,687,500 is to be funded by the FAA grant, will provide 
for the construction and overlay of an alternate 2.100-foot 
Taxiway 'F parallel to Runway 28L, connecting the 
existing Taxiway B' with the existing Taxiway F' at 
Taxiway 'L', together with all necessary and appurtenant 
work. The purpose of this project is to enhance the safe 
operations of departing aircraft encountering widebody 
aircraft congestion and to eliminate jet blast affects of 
aircraft turning onto the existing Taxiway F in the 
vicinity of the International Terminal Boarding Area 'D', 
by providing a by-pass directly accessing Taxiway 'F' and 
widebody aircraft takeoff Runways 28R and 28L. 

Taxiwavs 'A' and *B' Reconstruction and Overlay 
($6.332.933) 

This project, with a total cost of $6,332,933 of which 
$4,749,700 is to be funded by the FAA grant, will provide 
for the reconstruction and overlay of approximately 5,400 
feet of Taxiwavs 'A' and 'B' adjacent to the Boarding Area 
'F aprons, between the crossover Taxiway "D" and 
Taxiwavs 'S' and R', together with all the necessary and 
appurtenant work. The work will include excavation and 
replacement of sub-base 1 where sub-surface must be 
strengthened, as well as asphaltic concrete surface course. 
The purpose of this project is to enhance safety by 
strengthening and reconditioning the terminal apron 
boundary taxiwavs for aircraft entering the North 
Terminal aprons from the high-speed runway exit, as well 
as heavy cargo aircraft entering and leaving the Airport's 
north and west field cargo areas. 

Field Lighting Control Svstem Upgrade (S735.000) 

This project, with a total cost of $735,000 of which 
$551,250 is to be funded by the FAA grant, will provide 
for upgrading the speed and capacity of existing . The 
purpose of this project is to enhance the speed and 
capacity of the existing computerized field fighting control 
system in order to accommodate the proposed low 



1 Mr. Beier of the Airport states that sub-base is crushed aggregate (rocks) which sits below a 
cement-treated base, which is in turn covered by asphalt. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

6 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



Budget: 



visibility ground control system, which would significantly 
improve operational safety and alleviate flight delays 
during periods of extreme low \dsibility caused by fog or 
rain. 

A summary budget of the four capital improvement 
projects, as provided by the Airport, is as follows: 



Administrative Overhead 
Project Design Costs 
Project Inspection Costs 
Construction Contracts 
Total 



$150,000 

1,060,000 

1,060,000 

13.007.933 

$15,277,933 



Required Match: 



Comments: 



Recommendation: 



Mr. Beier of the Airport states that all project design and 
inspection will be performed by Airport staff, and that the 
finalized cost details for such design and inspection have 
not yet been developed (see Comment No. 1). Mr. Beier 
further states that contractors have not yet been selected 
for the four airfield improvement construction projects. 

$3,819,483 in previously appropriated Airport revenue for 
capital improvements. The Airport does not match funds 
per se, but funds 25 percent of the project costs and is 
reimbursed for up to 75 percent of the total actual cost of 
design, inspection and construction costs of these capital 
improvement projects. 

1. Attachment II provided by Mr. Beier contains a 
preliminary budget for the total estimated project costs of 
$15,277,933. 

2. The Airport has completed a Disability Access 
Checklist, which is on file with the Clerk of the Board. 

Approve the proposed resolution. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

7 



Attachnent I 




— O^ 0\r 

<~"> »=■ .-ficc 



u.£. pep<jrrMEXT or ttuks«»tatk» — fedchal avtatioh ADmtasTKXTKM 



Attachment II 
Page 1 of 2 



PART III - BUDGET INFORMATION - CONSTRUCTION 



Of • n,o . • o-< 



SECTION A - GENERAL 



1. Federal Domes? ,c As jis Joncc Cata loo No. 

2. Functional or Other Breaicout 



20 . 106 



SECTION B - CALCULATION OF FEDERAL GRANT 



C.i Cl..„u.„ 



1. Administration expense 



2. Preliminary expense 



3. Land^structures, right-of-way 



4. Architectural engineering basic lees 



U— «1 T I. n>i 



(-) 



1* 



7% 



5. Other architectural engineering lees 



6. Project inspection lees 



7. Land development 



8- Relocation Expenses 



_J_- Relocation payments to Individuals ino Businesses 



10. Demolition and removal 



11. Construction and p roject improvement 

12. Equipment 



13. Hrscellanecus 



14. Total (Lmes 1 through 13) 



15. Estimated Income (if applicable) 



16. Net Project Amount (Line 14 minus 15) 



17. Less: Ineligible Exclusions 



18. Add: Contingencies 



19. Total Project Amt. (Excluding Rehabilitation Grants) 



20. Federal Share reouested of Line !9 



21. Add Rehabilitation Grants Requested (100 Percent) 



150,000 



1,060,000 



1.060.000 



13.007.933 



15.277.933 



13 . 



277 



•0- 



15.277 .933 



11,458/50 



2LTot3l Federal grant reouested (Lines 20 S 21) 



11.458/50 



23. Grantee share 



24. Other shares 



25. Total project (U nes 21 23 J 24) 

FAA Form 5100-100 It 7 Jl SUPtHStDES ' »* ro m 



5 IOO - 10 P AC £5 



3,819,483 



51 



Poo. i 



nLLOL-.tlCll. XX 

Page 2 or 2 



DEPaPTmSnT OF TRANSPORTATION . FEDERAL avixtiom ao-imistraTIC 



SECTION C - EXCLUSIONS 






EawlaalW ba 



S5C i ION D - PROPOSED METHOD OF FINANCING NON-FEDERAL SHARE 



71. Grantee Share 



a. Securities 



b. Wor.jajei 



c. Assignations (By Aoplican:) 



A. Bonds 



e. Tax L:vi 



I. Non Cisn 



j. Other (Explain) 



h. TQTA! 



ZR. Other Shares 



a. Stat; 



b. Other 



c. Total Other Shares 



29. TOTAL 



SECTION E - REMARKS 



S 2,619,483 



2,819,483 



3,819,483 



fau. f.*» sioo.ioo ...t» su. c .« :!:j rAA ro-- 510 ^, .. 



PART IV PROGRAM NARRATIVE (Attocri - S<r- lrsTr u c'i n< 



HOC- tO **CCS t T««U 7 



r tuy 



Poo. 5 



10 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



Item 3 -File 98-1951 
Department: 

Item: 

Amount: 
Source of Funds: 
Description: 



Budget: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving the expenditure of funds for the 
emergency replacement of a structurally inadequate 
sewer on Oakhurst Lane from Warren Drive to Crestmont 
Drive. 

$72,710 

FY 1997-98 PUC Repair and Replacement Fund 

The PUC advises that on February 10, 1998 the sewer 
located on Oakhurst Lane from Warren Drive to 
Crestmont Drive failed, and immediate repairs were 
required in order to protect the health, welfare, and 
property of the citizens of San Francisco. The PUC 
declared an emergency on February 11, 1998. In 
accordance with Section 6.30 of the Administrative Code, 
the PUC initiated expedited contract procedures, and 
awarded a contract to J.F. Pacific Liners, Inc. in the 
amount of $47,460. ■ 

The total estimated project cost is $72,710, including 
$46,060 m actual construction costs (or $1,400 less than 
the bid amount; see Comment No. 2) and $26,650 for 
DPW engineering and construction management costs. 

A summary of this budget is as follows: 

Construction Contract $46,060 

DPW Bureau of Engineering 14,650 

DPW Bureau of Construction Management 12.000 

Total $72,710 

Attachment I provided by the PUC provides the budget 
details to support this $72,710 budget. Attachment II 
provided by the DPW details the DPW Bureau of 
Engineering and Bureau of Construction Management 
costs. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

11 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



Comments: 



1. Mr. P.T. Law of DPW reports that Invitations for Bid 
were submitted to twelve local contractors. None of the 
contractors submitted a bid because the work involved the 
use of special machinery. Because the coDapsed sewer 
was located under an exterior staircase beside an 
apartment building, special machinery to reinforce the 
sewer by fitting a smaller pipe into the collapsed portion 
of the sewer was needed. Mr. Law advises that because 
DPW had not received any bids, DPW requested a quote 
from J.F. Pacific Liners, Inc. which according to Mr. Law 
was the only contractor licensed on the West Coast to use 
this special machinery. J.F. Pacific Liners, Inc. 
subsequently submitted a bid for the emergency 
replacement of the sewer on April 3, 1998 in the amount 
of $47,460. 



2. PUC reports that although the contract, as awarded to 
J.F. Pacific Liners, Inc. was for $47,460, the final contract 
costs after adjustment for actual quantities used during 
construction was for $46,060 or $1,400 less than the 
contract amount of $47,460. 

3. PUC reports that work on the damaged sewer began on 
April 14, 1998 and was completed on July 3, 1998. 

4. Mr. Law advises that due to various delays in receiving 
expenditure documentation from the contractor, the PUC 
is requesting approval of the resolution approximately 
five months after the construction work was completed. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

12 



NOJ 23 "58 09=22 FR KETCH HETCKi' 



415 534 B7S6 TO S25204£l 




Attachment I 
Page i or 3 

98-0281 



AGENDA ITEM 



DEPARTMENT: 



Utilities Engineering Bureau 



AGENDA NO. 



/6 



MEETING Date November 10, 1998 



SUMMARY OF PROPOSED ACTION: 

Ratification of the Declaration of Emergency by the President of the Public Utilities Commission for Cle-n 
Water Contract No. CW-1 68, "Oakhurst Lane Emerscncy Sewer Replacement" and Requesting the Board 
of Supervisors to Approve the expenditure of funds for emergency work to repair the structurally inad equate 
sewer on Oakhurst Lane from Warren Drive to Crestmont Drive. 



DESCRIPTION OF PROPOSED ACTION: 

The work 
sewer, 

flow diversion for the internal repair work, mobilizanon and tramc routing work, and all related and incidental 
work on Oakhurst Lane from Warren Drive to Crestmont Drive. Tnis work included all planning desisn, and 
construction support services (under Job Order No. 1 59 IN). 

Invitarions for quotations were faxed to twelve (12) Contractors on February 24, 1998. 



AJTROYA1S: 

DEPAJtTMHVr / 
BUREAU 

UTtLTTIES ES'CR. 
BUREAU 

COMMISSION 
StCUCTAAY 



FINANCE Sieves Csmrichael 



GENERAL 
MANAGE* 



Romaine A. Boiericsc 



13 



WU 23 -58 2S-.22 FX KETC* HETCHT SP ,15 554 e756 TO S2520461 

Quotations were received from onc (1) ^ ^ ^ 3> ^ ^ ^^ 




Owv: 



l 



J- F. Pacific Liners, Inc. S47.460.00 

70 Union Way 
Vacaville, CA 95687 




Work is of lump sum and unh bid hem type. 

*r°° ^*-~-«-*«.*- cnt r or ^ ^^J^f^^ 

Therefo^ mc cost of ^ ^.^ fa ^^ tQ ^ ^ 7]Q . 

Bureau of Engineering (Planning. Design, and Construction Sucoort) f i* «n 

Bureau of Construct^ Management (Construction InsnecriocT JJJff? 

fmaLCaDSBa gson contra rn,, " } Si2 ' 000 

Total Project Cost Estimate ^^^ 

S72.710 

J Lw>rRNRQ 58.J.O.No.i59lN) 

3ccausc this w.->-? m 

aa an emergency contract, no subcontracting gods were established 

Schedule, 

Pactnc Luicrs, Inc. began work on April 14.1998 and ended en July 3,1993 

CONTEXT OF THIS ACTION: 

SJneS/ l ' 1 ^ 8 ' ?UC S ~« °P™°" °°*^ *■ Hy*aulic Erarineexi « 

^neermg^at the existing joints to me 12-mch and 1 8-inch diame^-lT-.~ S | * ° f *» Bur=3U ° f 

Xr^T a C: ^moni Drive ^ Wara Drf^ „- ^fc- ._, ,J™I f"* loc ^ on Oakhurst lane 
CTcmuon^errenuested^ -arated sendees. Se^r 

• S-1CY contract to repair this sc^er. 



H 



NOU 23 'SB 09"- 22 FP, HETCH KETOff SF 415 534 07S6 TO '52520461 Attachment I 

— Page 3 or 3 



Letters mronning the UEB Manager, the PUC President, the Mayor, the Controller, and the Board of 
Supervisors of the emergency situation were sent on February 11,1998. The President of the PUC has signed 
the Declaration of Emergency. 

Tne Bureau of Engineering prepared the plans and specifications for this emergency contract. 



Attachments: 

1 . Resolution 

2. Draft 3card of Supervisors Resolution 

Contact Person: Mr. Norman Chan Phone: 554-8355 



cc: P. Law W Lee C. Tang M. Williams 

C. Jacobo F. Bongoian B. Lim P. Scott 



15 



Attachment II 



Cost Breakdown for ( J.O. H591N, Contract #CW-T68) 
Oakhurst Lane Emergency Sewer Replacement 



Burwu at Engineering 



QaaaificaDon 


iifle 




-.aje 


Maura 


CcsJ 


5604 


Prcjec: Manager II 


S 


92 


6 S 


£52 


szx 


Ajisr^alfl <^fl Engineer 


S 


75 


22 J 


2,00 


52C2 


Junior Ovil Engineer 


s 


50 


76 J 


2,800 


£368 


Cvii Engineering AssocLzla U 


s 


60 


91 3 


5,480 


£381 


Engineering Slucenl Trainee 11 


$ 


23 


27 J 


891 


1429 


Secretary 


: 


43 


36 ! 


IJMfl 












14,651 










Rounded: 3 


14,850 



Bureau erf Construction Management 



Ciasarticaticn 


VifJO 




Rale 


hours 


Ccsi 


£210 
£208 

£204 
£318 


Senior Ovil Engineer 

Ovil Engineer 

Assatara Ovil Engineer 

Conatruction Insoecror 


S 

s 

s 
s 


100 
80 
£9 

74 


6 1 

12 J 

96 J 
62 3 


600 

5.782 
4.5£2 










Rounded: 3 


12,004 
12,000 



16 



Memo to Finance Committee 

December 9. 1998 Finance Committee Meeting 

Item 4 -File 98-1953 



Departments: 



Item: 



Location: 

Purpose of 
Lease Agreement: 



Department of Real Estate (DRE) 
Department of Public Health (DPH) 

Resolution authorizing a new lease with Yee Keung Siu, 
Mee Jing Siu. and Burton Siu of a one story office 
building at 1760 Ocean Avenue in San Francisco for OMI 
Family Center of the Community Mental Health Division 
of the Department of Public Health 

1760 Ocean Avenue. San Francisco 



To provide space for the operation of the OMI Family 
Center of the Mental Health Division of the Department 
of Public Health 



Lessor: 

Lessee: 

No. of Sq. Ft. and 
Cost Per Month: 



Yee Keung Siu. Mee Jing Siu, and Burton Siu 
City and County of San Francisco 



The proposed leased space consists of approximately 8,500 
square feet, to be leased at a base rental rate of $13,000 
per month, or $1.53 per square foot per month. The base 
rental rate of $13,000 would remain fixed for the entire 
five years of the initial term. The City would pay its pro 
rata share in any operating expenses increases occurring 
over the base term. 



Annual Payment 
by Lessee: 



Tenant 
Improvements: 



Utilities and 
Janitorial Services 
By Lessor: 



The annual base rental payment by the DPH would be 
$156,000. 



According to Mr. Steve Alms of the DRE the lessor will 
make tenant improvements estimated to cost $195,000. 
and the City is to reimburse the lessor $25,000 for such 
improvements. 



The lessor would pay for all services to the building, 
including utilities and janitorial services, except for 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

17 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

separately metered electric services which would be paid 
by the City. 

Term of Lease: The proposed lease would commence on the later of the 

date of completion of tenant improvements (expected on 
or about March 1, 1999) or upon approval by the Board of 
Supervisors and the Mayor. The proposed lease would 
expire February 28, 2004, for a term of five years. 

Right of Renewal: The City would have the option to extend the term for an 

additional two periods of five years each at 95% of the fair 
market rent. Mr. Steve Alms of the DRE advises that the 
fair market rent would be determined through mutual 
negotiations between the City and the lessor. 

Source of Funds: According to Ms. Monique Zmuda, Chief Financial Officer, 

the funds for the proposed lease were approved in the FY 
1998-1999 budget of the DPH. Ms. Zmuda reports that 
50% of the funds is Short Doyle/Medi-Cal and 50% 
General Fund monies. 

Description: Current Operation of the OMI Family Center 

Ms. Peg Hickox, Director of the OMI Family Center, 
explains that the OMI Family Center, currently 
operating at 2335 Ocean Avenue, is a mental health clinic 
within the DPH that provides community mental health 
services for a broad range of clients of all ages. Currently, 
OMI Family Center uses approximately 5.000 square feet, 
and leases the space at 2335 Ocean Avenue at SI. 18 per 
square foot. Such space is too small for the OMI Family 
Center's function and fails to meet wheelchair-accessible 
requirements under Americans with Disability Act (ADA). 
Moreover, the current space at 2335 Ocean Avenue is part 
of a building that was sold in July of 1998. and the new 
owner of the building plans to use the building for other 
purposes and has given notice to OMI Family Center that 
the OMI Family Center must vacate the premises. 

Specialized Tenant Improvements 

As previously noted, the City will reimburse the lessor 
$25,000 for specialized tenant improvements in the 
proposed space, under the terms of the proposed lease 
agreement. Such specialized alterations are unique to 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

18 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



OMI Family Center and include sound insulation to the 
walls, plumbing, case work or cabinetry, medicine- 
dispensing room, and private counseling offices with 
locking hardware. 

Utilization of Proposed Space 

The OMI Family Center provides its services using 60 
service providers, including 23 FTE staff employees, 10 
FTE trainees, and contract positions. Ms. Hickox reports 
that no change in this roster is anticipated for the OMI 
Family Center operation at the proposed leased space. 

According to Ms. Hickox, OMI Family Center provides its 
services to 650 clients. In the proposed leased space 
which comprises approximately 8,500 square feet, each of 
the 60 providers would have an average of 142 square 
feet. However, space would be allocated for group 
meeting rooms, reception/waiting areas, medication 
services areas, and individual counseling offices to serve 
OMI Familv Center's 650 clients. 



Comments: 



1. Mr. Alms advises that the proposed rent of $1.53 
per square foot represents fair market value. 

2. According to Ms. Hickox, the following criteria were 
used to select the proposed space: the total square 
footage, the accessibility of the OMI Family Center to its 
clients, and public streetcar transportation within the 
same neighborhood, as many of OMI Family Center's 
clients do not have their own forms of transportation. The 
proposed space fulfills all criteria, as it would provide 
adequate space, is accessible to OMI Family Center's 
clients, and is located on the K Streetcar line. 



Recommendation: 



Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

19 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

Item 5 - File 98-2015 



Department: 
Item: 



Description: 



Department of Human Resources (DHR) 

Ordinance implementing the provisions of an 
amendment to the Memorandum of Understanding 
(MOU) between the Municipal Executives 
Association for bargaining units M, EM and MSA 
and the Citj' and County of San Francisco to amend 
Appendix E of the MOU by adding Classes 1682 
and 5156 and the titles of Controller and Division 
Manager of Suburban Operations to the list to 
correct a clerical omission and to amend Appendix 
F of the MOU by adding Class 9278 and the title of 
Director of Airports to the list to correct a clerical 
omission. 

The proposed ordinance would correct reported 
clerical errors to Appendix E and Appendix F of 
the MEA MOU, which was approved in June of 
1998 by the Board of Supervisors, for the three- 
year period from July 1, 1998 through June 30, 
2001. The MEA MOU contained provisions for 
internal adjustment procedures. Appendix E 
identified those general City positions that were 
eligible to receive such adjustments and Appendix 
F identified those specific Airport positions that 
were eligible to receive such internal adjustments. 

File 98-1876 of this report is a proposed ordinance 
to implement the provisions of the MEA MOU to 
provide internal adjustments for 19 classifications 
covering 43 employees. However, as discussed in 
the Budget Analyst's report on File 98-1876, three 
of the classifications proposed to receive internal 
adjustments were not included in Appendix E or 
Appendix F of the previously approved MOU, which 
identified those positions eligible to receive internal 
adjustments. These three omitted classifications 
include: (1) 1682 Controller, (2) 5156 Division 
Manager of Suburban Operations and (3) 9278 
Director of Airports. This proposed ordinance would 
amend this previously approved MEA MOU to 
include these three classifications on these 
appropriate appendices. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

20 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

Recommendation: Approval of the proposed ordinance is a policy 

matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

21 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

Item 6 - File 98-1876 



Note: 



This item was continued from the December 2, 
Finance Committee Meeting. 



1998 



Department: Department of Human Resources (DHR) 

Item: Ordinance implementing the provisions of an 

amendment to the Memorandum of Understanding 
(MOU) between the Municipal Executives Association 
and the City and County of San Francisco pursuant to 
Article III.E.3, Subsections (B.l) and (E) of the MOU, 
to provide internal adjustments for the time period 
beginning July 1, 1998 through June 30, 2001. 

Description: In June of 1998, the Board of Supervisors approved an 

MOU with the Municipal Executives Association 
(MEA) for the three-year period from July 1, 1998 
through June 30, 2001. This MEA MOU contained 
provisions for an internal adjustment procedure, which 
authorized the City to allocate up to $325,000 to pay 
internal wage adjustments over the three-3-ear life of 
the agreement. The standards established in the MEA 
MOU to grant such internal adjustments were as 
follows: (1) the basic wage for the classification is 
below the prevailing wage level in the relevant labor 
market as demonstrated by verifiable salary data, 
and/or (2) there is an ongoing and demonstrable 
recruitment and/or retention problem, and/or (3) 
traditional salary relationships, which continue to be 
justified, have been substantially altered, and/or (4) 
either the duties, responsibilities and/or minimum 
requirements for a classification have been altered 
significantly as reflected in either the class description 
or the most recent exam announcement. The MEA 
MOU granted internal adjustments to 16 
classifications covering 19 positions as of July 1, 1998. 
In addition, the MOU stated that the City and the 
MEA would attempt to reach agreement on internal 
adjustments for 39 other classifications identified in 
Appendix E of the MOU by September 30, 1998. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

22 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



The MEA MOU, previously approved by the Board of 
Supervisors, also contained a specifie «6ection 
addressing Airport Internal Adjustments. This section 
stated that the San Francisco International Airport 
was undertaking a classification/compensation study 
and that the Director of Human Resources, upon 
recommendation of the Director of Airports, would be 
authorized to make internal adjustments, not to 
exceed one percent of the Airport's permanent salary 
budget for FY 1998-99, which the Controller's Office 
determined to be $92,692. This section also stated that 
the Airport's internal adjustments would be limited to 
those classifications that were specified in Appendix F 
of the MOU. 

The proposed ordinance would implement the 
provisions of this previously approved MOU, to provide 
internal adjustments for 19 additional classifications, 
which represents 43 employees, for the three-year time 
period retroactive from July 1. 1998 through June 30, 
2001. 

Attachment 1, provided by DHR, identifies 18 of the 19 
classifications, and 42 of the 43 positions, that would 
receive the proposed internal adjustments in pay. 
Attachment 1 also contains (1) the percent of the 
proposed increase for each classification, (2) the 
maximum biweekly and annual pay rates for each 
classification before the internal adjustment, (3) the 
maximum biweekly and annual pay rates for each 
classification after the internal adjustment, and (4) the 
annualized three year cost of the proposed increase in 
pay. As shown in Attachment 1, the proposed increases 
for the internal adjustments range from a two percent 
increase for the 5131 Bureau Chief of the Department 
of Public Works to a 12.5 percent increase for the 5156 
Division Manager of Suburban Operations for the 
Public Utilities Commission. Attachment 1 also 
identifies a total salary cost for the third year of the 
MOU in the amount of $324,261 for the proposed 
internal adjustments, which includes a salary cost of 
$104,428 for the internal adjustments approved on 
July 1. 1998 and the salary cost of $219,833 for the 
internal adjustments currently being proposed. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

23 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

The one classification and position that is not included 
m Attachment 1 is 9278, the Director of Airports. The 
Director of Airports is proposed to receive an 18.7 
percent internal adjustment, which is the highest 
increase proposed. Such an increase would result in 
the Director of Airports' annual salary increasing from 
the current $147,178 to $174,661, an annual salary 
increase of $27,483. 

Comments: 1. In addition to the proposed internal adjustment 

increases to salaries for these 19 classifications, which 
range from two percent to 18.7 percent, all 
classifications and employees in the MEA received a 
three percent increase in salaries, effective as of 
October 3, 1998. 

2. Attachment 2, provided by the Department of 
Human Resources, identifies the reasons for the 
internal adjustments for each of the 18 classifications, 
excluding the Director of Airports, based on the 
standards identified in the MEA MOU. Ms. B. J. Dix of 
the Department of Human Resources reports that the 
increase in the Director of Airports' salary was based 
on the Airport's classification/compensation study. 

3. As required by the MEA MOU, the proposed 
internal adjustment increases would be retroactive to 
July 1, 1998 for all of the proposed classifications, 
except for the Director of Airports, for which the 
proposed increase would be prospective. 

4. As shown in Attachment 3, the Controller's Office 
reports that the proposed ordinance would result in 
estimated incremental costs of approximately 
$270,800 for salary and fringe benefits for these 19 
classifications over the three-year period of this MOU. 
According to Ms. Peg Stevenson of the Controller's 
Office, these amounts were previously included in the 
City's projections and cost analysis. 

5. According to Mr. John Madden of the Controller's 
Office, the Salary and Benefit Reserve of $6,257,587 
approved in the FY 1998-99 budget is the source of 
funds for the proposed General Fund supported salary 
and benefit expenses. Mr. Madden notes that increases 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

24 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



in salaries and benefits of non-General Fund positions, 
such as the Director of the Airport, would be paid from 
non-General Fund revenues. Mr. Madden reports that 
the current balance in the Salary and Benefit Reserve 
account is $3,868,662. 

6. Appendix E and Appendix F of the MEA MOU, as 
previously approved by the Board of Supervisors, lists 
the specific classifications which are authorized to 
receive an internal adjustment. These appendices do 
not provide authorization for three classifications, (1) 
1682, Controller, (2) 5156, Division Manager of 
Suburban Operations, and (3) 9278 Director of 
Airports to receive internal adjustments during the 
three-year MOU period. However, this proposed 
ordinance recommends implementing internal 
adjustments of 11 percent for the Controller, 12.5 
percent for the Division Manager of Suburban 
Operations and 18.7 percent for the Director of 
Airports. 

Although these three positions were not authorized to 
receive any internal adjustments pursuant to this 
subject MOU. which was previously approved by the 
Board of Supervisors, according to Mr. Geoff Rothman 
of the Department of Human Resources, these three 
classifications were omitted from the appendices on 
the previously approved MEA MOU, due to clerical 
errors. Mr. Rothman reports that the MEA and the 
City have mutually agreed to provide the proposed 
internal adjustments for these three classifications. 

7. Mr. Ted Lakey and Ms. Michele Modena of the City 
Attorney's Office report that since these three 
positions were not included in Appendix E or Appendix 
F of the MEA MOU, which listed those positions 
authorized to receive internal adjustments, the 
proposed internal adjustments for these three 
positions cannot be approved, unless the MEA MOU is 
amended to include these three positions in the 
appropriate appendices. File 98-2015 of the December 
9, 1998 Finance Committee calendar is a proposed 
ordinance to amend the MEA MOU to include these 
three positions on the appropriate appendices. 
Therefore, if the Board of Supervisors decides to 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

25 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

approve internal adjustments for all of the proposed 19 
classifications, the Board of Supervisors should first 
approve File 98-2015, which would amend the MEA 
MOU to include the three omitted classifications on 
the appropriate appendices. 

Recommendation: Approval of the proposed ordinance is a policy matter 
for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

26 



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Md 83:51 86.21 



MOU 19 'S3 17:10 FR 

City and County of San Francisco 



TO: 



THROUGH: 



FROM: 




415 557 4319 TO BUDGET ANALYST P . 02/02 

Attachment 2 

Department of Human Resources 



ANDREA R. GOURDtNE 
HUMAN RESOURCES DIRECTOR 



MEMORANDUM 



Deborah Newman 
Budget Analyst 
Board of Supei 

Geoffrey Lj Rothman 
Director of Employee 
Employee Relations 

Janet BosnicrvjSeijas 

Compensation Manager 

Compensation Program/ Employee Relations Division 




€/ 4t<=> 



RE: 



MEA Internal Adjustments Submission Standards 



The MEA Internal Adjustments are based on the standards set forth below; 



1. 

2. 
3. 
4. 



The basic wage for the classification is below the prevailing wage level in the relevant labor marke: as 
demonstrated by verifiable salary data: and /or 

There is an ongoing and demonstrable recruitment and/or retention problem; and/or 

Traditional salary relationships, which continue to be justified, have been substantially altered; anchor 

Either the duties, responsibilities, and/or minimum requirements for a classification have been atte'sd 
significantly as reflected -in either the class description or the most recent exam announcement 

i 

Class Title Standard(s) Used 

1 1 20 Director of Animal Care 1 

1 125 Division Manager, Registrar of Voters 1 . 2, 4 

1 1 32 County Clerk/Recorded 4 

1682 Controller 1 

1843 Exec Dir., SE Community Facility Commission 3,4 

2925 Chief, Medical Sodat Services 1 .4 

4349 Director of Real Estate! Tax Collector 1 ,3,4 

4368 Director, Bureau of i Delinquent Revenue 1 ,3,4 

51 04 Public BWgs Maint! & Repair Superintendent 3 

5131 Bureau Chief, DPW 3 

5136 Superintendent of Street and Sewer Repari - 3 

51 55 Division Manager, Suburban Operations 1 .4 

5162 Water Purification Division Manager 1 ,4 

5170 Street Cleaning & Planting Superintendent 3 

5212 Principal Engineer j 3 

9357 Maritime Operations Manager 1 ,3,4 

9382 Govt & Public Affairs Manager, Port 1 ,4 

9386 Senior Property Manager, Port 1 ,2,3,4 



44 Cough Strwot • %3t\ Fnnchtco. CA 6410^-1233" 

28 



TOTAL PAGF . RH? ** 



£/3JE&% CITY AND COUNTY OF SAN FRANCISCO 




OFFICE OF THE CONTRO 



Attachment 3 



Edward Hg> 
Cc 



John W. : 
Chief A ■aurant Cx> 



November 19, 1998 

Ms. Gloria L. Young, Cleric of the Board 
Board of Supervisors 
40 1 Van Ness Avenue 
San Francisco, CA 94 1 02 

RE: Municipal Executives Association MOU, File No. 98-1 876 

Dear Mr. Taylor. 

In accordance: with Ordinance 92-94, I am submitting a cost analysis of an amendment to the 
Memorandum of Understanding between the City and County of San Francisco and the Municipal 
Executives Association. The agreement covers the period Jury 1 , 1 998 through June 30, 2001 , and affects 
approximately 43 employees with a salary base of approximately S3.9 million. 

Based on our analysis, the agreement will result in estimated incremental costs of approximately $259,000 
in FY 1998-99, $5,800 in FY 1999-00, and $6,000 in FY 2000-01. The agreement will result in a cost 
increase above the base salary amount of approximately 6.48% in FY' 1 998-99. 

Please note that the total dollar amount for the internal adjustments implemented by ri-rk amendment was 
provided for in the Municipal Executives Association MOU as it was approved by the Board of 
Supervisors in J une of this year. The amounts listed above were contained in the cost analysis provided bv 
the Controller at that time (letter of June 5, 1998), and have been anticipated in our projections. 

If you have any additional questions or concerns please contact John Madden at 55-4-7500. 



Sincerely, 

c5 U^~ JUL- 



"Edward M Harrington 
Controller 

cc: Viclti Rambo, ERD 

Harvey Rose, Budget .Analyst 



4l5-»*--500 






/ ' 



ST5 StrvtnKM Su-en ■ Room ZS6 - Sea Francisco CA H1C IM 

29 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



Item 7 -File 98-1707 

Department: 

Item: 



Description: 



Comments: 



Department of Parking and Traffic 

Ordinance amending Section 2A.180 of the San Francisco 
Administrative Code, granting Department of Parking 
and Traffic (DPT) authority to sell gift certificates for 
payment for parking at City-owned parking garages. 

Current Functions and Duties of DPT 

Section 2A. 180(a)(8) of the Administrative Code currently 
provides that: 

"The Department of Parking and Traffic shall be 
responsible for the day to day operation of the 
affairs placed under its jurisdiction, including but 
not limited to the following functions and 
operations: 

[pjarking ticket enforcement, parking control 
officers, parking offense towing, scofflaw programs, 
the maintenance of information on the issuance 
and disposition of parking citations and 
maintenance of liaison with the municipal court." 

Proposed Amendment to SF Administrative Code 

The proposed ordinance amends Section 2A.180 to 
permit DPT to sell gift certificates to serve as 
payment for parking at City-owned parking 
garages. 

1. Implementation of Amended Provision 

According to Ms. Julia Dawson of DPT, while the details 
of implementing the gift certificate parking program have 
not yet been finalized, the gift certificates would likely be 
sold in $25 booklets of coupons, with each coupon having 
a cash value of $1. Customers who park at a City-owned 
garage would pay for their parking charges by using the 
coupons. Customers will be given change if the value of 
the coupons used exceeds the total amount due for any 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

30 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



given time period of parking. Payment may consist of a 
combination of coupons and cash. 

Gift certificates would be sold at the 17 City-owned 
parking garages and at the Citation Division of the 
Department of Parking and Traffic, located at 1380 
Howard Street, where DPT accepts payments for parking 
citations. All of these locations are equipped with 
cashiering ability. Attachment 1 provided by Ms. Dawson 
is a list of the 17 City-owned parking garages and the 
location of each garage. 

2. Fiscal Impact 

According to Ms. Dawson, DPT collects $18,083,960 in 
parking revenues from the 17 City-owned parking 
garages. DPT does not anticipate parking revenues to 
decrease based on the sale of gift certificates. However, 
either an increase in revenue, which cannot be estimated 
at this time, or a revenue-neutral impact is possible, 
according to Ms. Dawson. Furthermore, Ms. Dawson does 
not anticipate any increase in parking garage operating 
costs as a result of the proposed gift certificate parking 
program. 

3. Undetermined Impact on Traffic and Garages 

According to Ms. Dawson, the impact on traffic flow and 
garage use in the City from the sale of gift certificates for 
the 17 City-owned parking garages cannot be determined 
at this time. 

Possible effects on the use of vehicles and of garages are 
analyzed under three scenarios: 

Scenario 1: 
Increased Use of Citv Garages 

One possible consequence is that the availability and sale 
of gift certificates may draw existing customers of 
privately-operated parking garages to City-owned 
garages, with no substantial change in existing level of 
vehicle use. According to Ms. Dawson, the sale of gift 
certificates for city garages may bring greater awareness 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

31 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



of the locations, proximities to various recreational and 
shopping areas, and rates of city garages for those who 
currently drive. 

Scenario 2: 
No Change in Garage Use or Vehicle Use 

A second possible consequence is that the gift certificates 
will be used by current drivers to substitute cash 
paj-ments, again neither encouraging nor discouraging 
drivers in their current level of vehicle use. 

Scenario 3: 
Increase in Both Garage Use and Vehicle Use 

A third possible result is that the sale of gift certificates 
could increase both garage use and vehicle use. This 
could occur if the gift certificates are used by gift 
recipients who would not have otherwise used the City- 
owned parking garages. Such users would include those 
persons who would not drive at all if they would have to 
pay their own parking fees. 

According to Mr. Bill Wycko of the Planning Department, 
despite a strong correlation between parking costs and 
the decision to drive, where the choice to drive exists, the 
use of gift certificates would likery pose a negligible 
change in the current level of vehicle use in the City. 
According to both Ms. Dawson and Mr. Wycko, most 
recipients of the gift certificates of parking would likely be 
those who would drive in any event. 

According to Mr. Wycko, studies in the early 1990's have 
shown that half the workforce who drive into the 
downtown area as their daily commute enjoy parking 
privileges without paying for their own parking costs. 
Indeed, the more problematic type of traffic behavior is 
not vehicle use for discretionary or shopping trips, but 
rather, commuters driving to work on a habitual basis as 
a chosen alternative to mass transit. According to Mr. 
Wycko and Ms. Dawson, however, the rates at City-owned 
parking garages are oriented to create incentives for 
parking based on short-term, discretionary trips, and 
disincentives for parking based on longer-term, work- 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

32 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

related trips. According to Ms. Dawson, no changes in the 
individual rates would be made on the basis of the 
proposed new gift certificate parking program. 

4. Positive Impact For Merchants in City 

According to Ms. Dawson, one purpose of the gift 
certificate parking program will be to decrease shoppers' 
growing reliance on stores outside of San Francisco. By 
permitting shoppers another method of meeting their 
parking needs through the use of the proposed gift 
certificates, the proposed ordinance should assist in 
attracting and retaining shoppers to merchants doing 
business within San Francisco City limits and enhance 
the commercial viability of business enterprises in the 
City. 

Recommendations: 1. Approval of the proposed ordinance is a policy 

matter for the Board of Supervisors. 

2. If this ordinance is approved, the Budget Analyst 
recommends that DPT be required to report back to the 
Board of Supervisors within one year regarding the 
results of this proposed new program. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

33 



NOV. -07' 98 (SAT) 15:49 



CITY k CO OF S. F. PARKING DEFT 



f- B A N CISC O 



ItiL: flttacnment i 

City and County of San Francisco 




PEPAITTMEMT OF PARKING 4 TRAFFIC 



WILLIE LEWIS BROWN, JR., Mayor 

STUART R. SUNSHINE, EXECUTIVE DIRECTOR 




Department of Parking and Traffic 
City Parking Garages 





Garaee 


Address 


Operator 


Number 


Budget 




of Spaces 


FY 1998/99 


1. 


Civic Center 


355 McAllister Street 


Ampco System Parking 


840 


5755,000 


2. 


Ellis &. OFarrcll * 


123 Gran-ell Street 


Ampco System Parking 


925 


$701,000 


3. 


Fifth &. Mission * 


833 Mission Street 


City Park 


2,622 


$450,000 


4. 


Golden Gateway 


250 Clay Street 


5 Star Parking 


1,095 


$2,532,422 


5. 


Japan Center * 


1660 Geary Boulevard 


Ampco System Parking 


850 


$0 


6. 


Lombard Street 


2055 Lombard Street 


Pacific Park Management 


205 


$68,152 


7. 


Mission - Bartlett 


3255 21st Street 


S&F7MEDA 


350 


$49,420 


8. 


Moscone Center 


255 Third Street 


ABC Parking; 


732 


$866,327 


9. 


Performing Arts 


360 Grove Street 


ABC Parking 


612 


$581,600 


10. 


Polk-Bnsh 


1399 Bush Street 


City Parking Company 


129 


$65,400 


11. 


Portsmouth ♦ 


733 Kearny Street 


City Park 


. 501 


$689,749 


12. 


San Francisco 
General Hospital 


2500 24th Street 


Pacific Park Management 


1,701 


$582,451 


13. 


St Mary's Square 


433 Keamy Street 


Parking Concepts Inc. 


828 


$696,000 


14. 


Sutter Stockton * 


444 Sutter Street 


Ampco System Parking 


1.865 


$3,827,550 


15. 


Union Square 


333 Post Street 


City Park 


1,100 


$3,569,900 


16. 


Vallejo Street 


766 Vallejo Street 


City Parking Company 


163 


$504,786 


17. 


1 660 Mission 


1660 Mission Street 


Convenience Parking 


59 


$0 



• Non-Profit Garages 



(*1R| SS4-PARK FAX (418| 864-U34 



26 Van Ness Avrniua, Sulta *io 

i 34 



s*n Prandactt, ca M102-487B 



Memo to Finance Committee 

December 9. 1998 Finance Committee Meeting 

Item 8 -File 98-1811 



Department: 
Item: 



Department of Human Resources 

Ordinance amending Article II. Section 10.25-12 of the 
San Francisco Administrative Code to increase the 
settlement limitations for individual grievance claims to 
850,000 per claimant and S50.000 for class grievance 

claims. 



Description: 



Article II, Section 10.25.12 of the San Francisco 
Administrative Code currently authorizes the Human 
Resources Director to settle, without subsequent approval 
by the Board of Supervisors, any pending or future 
grievance filed pursuant to a valid memoranda of 
understanding in an amount not to exceed S10.000 for an 
individual claim and $50,000 for a class claim involving 
multiple employees. 1 

In addition, this section authorizes appointing officers to 
settle, without subsequent approval by the Board of 
Supervisors. grievances filed pursuant to valid 
memoranda of understanding in an amount not to exceed 
the equivalent of ■ 45 days of a grieving employees 
compensation. 

All settlements pursuant to this section must be in 
accordance with the policies and procedures of the 
Department of Human Resources and require the 
approval of the City Attorney and certification by the 
Controller of the existence of sufficient funds to pay the 
settlement. 

Article II, Section 10.25.12 of the Administrative Code 
also requires the Human Resources Director to provide 
the Board of Supervisors Finance Committee with a 
quarterly report of all final settlements covered by this 
section of the Administrative Code. 



Approval of the proposed ordinance would amend the 
Article II, Section 10.25.12 of the San Francisco 



1 According to Ms. Alice Yillagomez of the Department of Human Resources, individual claims 
settled above SI 0.000 and class claims settled above $50,000 require subsequent approval by the 
Board of Supervisors. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

35 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

Administrative Code by increasing the settlement 
limitation from $10,000 to $50,000, for individual 
grievance claims filed pursuant to a valid memoranda of 
understanding and settled by the Human Resources 
Director, without subsequent approval by the Board of 
Supervisors. Ms. Alice Villagomez of the Department of 
Human Resources advises that the existing $50,000 
settlement limitation for class grievance claims would 
remain the same if the proposed ordinance is approved. 

The attached memorandum, provided by Ms. Villagomez, 
explains the basis for the requested increase in the 
settlement limitation for individual grievance claims that 
are settled by the Human Resources Director without the 
requirement for subsequent approval by the Board of 
Supervisors. In this memorandum, referring to the 
proposed settlement limitation increase, Ms. Villagomez 
states that "Increasing the settlement authority from 
$10,000 to $50,000 for individual grievances will promote 
a uniform and expeditious processing of all grievance 
settlements involving settlements up to the $50,000 cap." 

Recommendation: Approval of the proposed ordinance is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

36 



NUU £U3D 1 1 • oo r n 



Attachment 



City and County of San Francisco 



November 20, 1998 




Department of Human Resources 



ANDREA R. GOURDHC1 
HUMAN RESOURCES DIRECTOR 



TO: 



Harvey Rose i 
Budget Analys^ 



FROM: Alice Villagomez 

Deputy Director, ERD 



RE: 



FileNo.98-1811 



The proposed amendment to the S.F. Administrative Code will provide for the cap on the 
settlement authority for an individual grievance to be brought up to the same settlement 
authority level as is currently provided for a class grievance. 

Increasing the settlement authority from $10,000 to $50,000 for individual grievances 
will promote a uniform and expeditious processing of all grievance settlements involving 
settlements up to the $50 ,'dOO cap. 

This proposed amendment is also in keeping with the fiscal and administrative efficiency 
initiatives adopted by the Board of Supervisors within the last year. 

Please call me should you have any further questions. 



At Gooflh Strwt • S*n Francimco, CA »410J-1Z33 

37 



Memo to Finance Committee 

December 9. 1998 Finance Committee Meeting 



Item 9 - File 98-1848 

Department: 

Item: 



Description: 



Assessment Appeals Board 

Ordinance amending Chapter 2B, Section 2B.1 through 
2B.8 and 2B.10 through 2B.14 of the San Francisco 
Administrative Code to increase the number of 
Assessment Appeals Board members, to establish 
eligibility requirements for Assessment Appeals Board 
members, to establish criteria for selection of Assessment 
Appeals Board panels and hearing officers, to establish 
guidelines for joint meetings of the Assessment Appeals 
Boards, and to make non-substantive clarifying revisions. 

The proposed ordinance would amend Chapter 2B, 
Sections 2B.1 through 2B.8 and 2B.10 through 2B.14 of 
the City's Administrative Code to (1) increase the overall 
membership of the two Assessment Appeals Boards by 
one from 15 members to 16 members, (2) establish new 
eligibility requirements for members of the Assessment 
Appeals Board, (3) establish different criteria for selection 
of Assessment Appeals Board panels and hearing officers. 
(4) establish guidelines for joint meetings of the 
Assessment Appeals Boards, and (5) make non- 
substantive clarifying revisions. 

The proposed ordinance would make the following 
substantive changes regarding the two Assessment 
Appeals Boards, Assessment Appeals Board No. 1 and 
Assessment Appeals Board No. 2: 

1. Increases the number of regular members on 
each Assessment Appeals Board by two from three 
to five members resulting in a combined increase of 
four regular members. 

2. Reduces the number of alternate members on the 
Assessment Appeals Board No. 2 by three from six 
to three members, to make this consistent with the 
Assessment Appeals Board No. 1. The proposed 
ordinance would retain the same number of 
alternate members on the Assessment Appeals 
Board No. 1, which is currently three members. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

38 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



3. Regular members of the Assessment Appeals 
Board No. 2 would serve as alternate members of 
Assessment Appeals Board No. 1. 

4. Establishes new eligibility criteria for 
appointment as a regular or alternate member of 
either Assessment Appeals Board, in compliance 
with Section 1624.05 of the California Revenue and 
Taxation Code. The requirements state that no 
individual would be eligible for appointment on the 
Assessment Appeals Boards unless he or she has 
five years professional experience in the State as a 
certified public accountant, licensed real estate 
broker, attorney, or property appraiser accredited 
by a nationally recognized professional 
organization. The proposed eligibility requirements 
would not apply to current regular or alternate 
members of either Assessment Appeals Board who 
held a seat prior to September 1. 1998 or who are 
subsequently reappointed to their same seat. 

5. Addresses the transition to the new Assessment 
Appeal Boards composition, by continuing all of the 
incumbent regular and alternate Board members in 
their same seats, and reappointing incumbent 
members whose terms had previously expired. For 
Assessment Appeal Board No. 2 alternates, this 
ordinance requires the Clerk of the Board of 
Supervisors to seleetr by lot, three of the six 
incumbent Assessment Appeal Board No. 2 
alternates to continue to serve in their seats for 
three-year staggered terms. Any member of 
Assessment Appeals Boards No. 1 and No. 2, 
including members who were eliminated as a result 
of the Clerk of the Board of Supervisors' selection 
by lot, can, if qualified, apply for future vacant 
seats. These provisions would expire on September 
30, 2001, after the transition is completed. 

6. The terms of the regular and alternate members 
of both of the Assessment Appeals Boards will 
continue to be three-year staggered terms under 
the proposed legislation. The legislation continues 
to allow a member of an Assessment Appeals Board 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

39 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

to continue for 60 days after he or she is replaced 
by a new member to serve and to hear cases that 
had begun prior to the appointment of the new 
member. 

7. Details specific guidelines for the Clerk of the 
Board of Supervisors to use in rotating the selection 
of the three member panels to hear individual 
applications for each Assessment Appeals Board 
and in selecting hearing officers. The proposed 
rotating system is designed to assure that all 
members with the same priority level have an 
equal opportunity over time to participate as 
panelists and hearing officers. 

8. All regular and alternate members of 
Assessment Appeals Boards No. 1 and No. 2 would 
be concurrently appointed as hearing officers. The 
current selection process for hearing officers, which 
requires that the Board of Supervisors, by motion 
adopted by majority vote, appoint the hearing 
officers, would be deleted. 

Comments: 1. In addition to the above eight substantive changes 

contained in the proposed legislation, this ordinance 
authorizes the Board of Supervisors to appoint directly 
the regular and alternate members of the Assessment 
Appeals Boards, pursuant to Sections 1622.1 and 1623.1 
of the California Revenue and Taxation Code. Ms. 
Marilyn Cosentino, Assessment Appeals Board 
Administrator, advises that the Board of Supervisors 
already appoints the regular and alternate members of 
the Assessment Appeals Boards. Therefore this 
legislation merely reflects a technical change to make the 
Administrative Code consistent with the actual practice. 

In addition, the proposed legislation requires the 
Assessment Appeals Boards to hold joint meetings to 
propose rules and regulations for governing the operation 
of the Assessment Appeals Boards to the Board of 
Supervisors. These meetings would be conducted by the 
five regular members of both Boards, with the attendance 
by three regular members of each Board constituting a 
quorum. At such joint meetings, alternate members 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

40 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

cannot replace regular members. Ms. Cosentino advises 
that all of these provisions already are in practice and 
that this legislation merely reflects a technical change to 
make the Administrative Code consistent with the actual 
practice. 

2. The attached memo from Ms. Cosentino explains the 
general purpose of this legislation. 

3. The proposed legislation does not change the 
compensation level of members of the Assessment 
Appeals Board which is presently $100 for each one-half 
day of service. 

4. Ms. Cosentino explains that Assessment Appeals Board 
members are only paid when they serve as panel 
members or hearing officers. Therefore, although the 
overall membership of the two Assessment Appeals 
Boards would have a net increase of one member, this 
increase in the total number of Assessment Appeals 
Board Members by one from 15 to 16 would only increase 
the total size of the qualified pool and not increase the 
total amount of compensation paid to members of the 
Assessment Appeals Board. 

Recommendation: Approval of the -proposed ordinance is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

41 



Jfcit_ — w . 



v-"+ ; uar MiitbiMtiN I /AKKt/Auo o<j/-\r^u 



ASSESSMENT 
APPEALS BOARD 

Phone (415)554-6778 
FAX (415)554-6775 
TDD (415)554-5227 



December 1, 1998 



MEMORANDUM 




Attachment 
Pase 1 of 2 



875 Sieven.son Street 

Suite #400 

San Francisco. CA 94103 



To: Office of Budget Analyst 

From: Marilyn Cosenti.no, Administrator Hi C- 

Re: Ordinance amending chapter 2B of the Administrative Code 

to Change Assessment Appeals Board Membership and 
Designation 

RATIONALE FOR IMPLEMENTATION OF 
ORDINANCE NO. 



The purpose of this legislation is to increase the competency, 
effectiveness and efficiency of the assessment appeals boards by creating an 
expanded group of qualified individuals to serve as appeals board members 
and hearing officers. 

The legislation will change the composition of the boards from two 
three-member panels to two five-member panels. Additionally, the 
legislation will require that newly-appointed board members meet the 
qualification criteria that Revenue & taxation Code Section 1624.05 imposes 
on assessment appeals board members m larger counties. Under that 
criteria, newly-appointed board members must have five years' experience in 
California as a certified public accountant, a licensed real estate broker, an 
attorney, or a property appraiser accredited by a nationally recognized 
professional organization. 

This legislation will allow for greater scheduling flexibility by creating 
a larger pool of individuals from which to impanel the boards. Further, the 
legislation will protect the city's tax revenues and enhance public perception 



42 



Dec-Ol-98 04 : 08P ASSESSMENT APPEALS BOARD P.C3 

Attachment 
?aee 2 of 2 



of the appeals process by ensuring that the board members have the 
necessary skills and experience in making appropriate assessment decisions. 

Passage of this Ordinance will also define San Francisco's proactive 
position in a movement that is currently taking place throughout California. 
As explained in the attached letter to the Clerks of the Board of Supervisors 
dated October 23, 1998, tbe California Association of Clerks and Election 
Officials has proposed legislation that, if approved, requires all assessment 
appeals board members in all counties to meet the eligibility requirements 
set forth in Revenue & Taxation Code Section 1624.05. 



lu^i 




Marilyn Co^entino 
Administrator 



43 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

Item 10 - Files 98-1868 



Department: 
Item: 



Purpose of Lease: 



Lessor: 
Lessee: 



Airport Commission 

Resolution approving a renewal of an existing lease 
agreement for operation of Runway End Identification 
Lights (REIL), RWY01L between the U.S. Federal 
Aviation Administration (FAA) and the City and County 
of San Francisco, acting by and through the Airport 
Commission. 

This lease provides the FAA with approximately .018 
acreage for the continued operation and maintenance of 
two sets of lights, located on each side of Runway 01 -Left 
(RWY OIL), identified on the attached map as FAA 
(REIL). The purpose of these lights is to assist in ensuring 
the safety of aircraft movements at San Francisco 
International Airport. 

City and County of San Francisco 

Federal Aviation Administration 



Amount Payable 
to Airport: 



Term of Lease: 



Description: 



No charge to the FAA. In return, the FAA continues to 
operate, and maintain Runway End Identification Lights 
(REIL) for RWY OIL at no cost to the Airport. 

One year, commencing October 1, 19&8", renewable 
annually at the option of the FAA for a period of fifteen 
years not to extend beyond September 30, 2013. 

The proposed resolution would approve a renewal of an 
existing lease between the Airport and the FAA in order 
for the FAA to continue operating and maintaining 
Runway End Identification Lights at Runway 01 -Left. 
According to Mr. Martin Slater of the Airport, each REIL 
System provides aircraft pilots with lights designating the 
end of the runway for visual identification of the runway 
threshold. Mr. Slater states that there are a total of three 
REIL Systems at the Airport, located on runway 
approaches which are over land. Runway approaches 
which are over water have instrument landing systems. 
The Airport has separate leases for the other REIL 
Systems and for the instrument landing systems. 

Board of Supervisors 

Budget Analyst 
44 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

Comments: 1. The Airport Commission approved a resolution on 

September 15, 1998 stating that the REIL Systems .are 
essential to the safet}' of aircraft movements at San 
Francisco International Airport. 

2. The lease would be retroactive to October 1, 1998, and 
therefore the proposed resolution should be amended to 
provide for retroactive authorization. 

Recommendation: Amend the proposed resolution to provide for 

retroactivity, and approve the resolution as amended. 



Board of Supervisors 
Budget Analyst 

45 



J i J U J . 1 3 . IK 



orlh AViAJiUN 



0730 P. i 
Attachment 




46 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

Item 11 -Files 98-1869 



Department: 
Item: 



Purpose of Lease: 



Lessor: 
Lessee: 



Airport Commission 

Resolution approving a new lease between the U.S. 
Federal Aviation Administration (FAA) and the City and 
County of San Francisco, acting by and through the 
Airport Commission, to authorize the FAA to install, 
operate, and maintain a Precision Approach Path 
Indicator (PAPI) System. 

This lease provides the FAA with approximately 0.28 
acreage of space for the installation, operation, and 
maintenance of one Precision Approach Path Indicator 
System at the location at the Airport identified on the 
attached map as FAA (PAPI). The purpose of this system 
is to assist in ensuring the safety of aircraft movements at 
San Francisco International Airport. 

City and County of San Francisco 

Federal Aviation Administration 



Amount Payable 
to Airport: 



Term of Lease: 



Description: 



No charge to the FAA. In return, the FAA installs, 
operates, and maintains the PAPI System at no cost to 
the Airport. 

One year, commencing October 1, 1998, renewable 
annually at the option of the FAA for a period of fifteen 
years not to extend beyond September 30, 2013. 

The proposed resolution would approve a new lease 
between the Airport and the FAA in order for the FAA to 
install, operate, and maintain a Precision Approach Path 
Indicator System at a new site at the Airport. According 
to Mr. Martin Slater of the Airport, the installation of this 
PAPI System would increase to five the total number of 
such sites in the Airport. 

According to Mr. Slater, the PAPI is used to provide 
aircraft pilots with a visual indicator using different 
colored lights to indicate the aircraft is on its proper glide 
path for the landing approach, or that it is too high or too 
low for the landing approach. 

Board of Supervisors 
Budget Analyst 

47 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

Comments: 1. The Airport Commission approved a resolution on 

September 15, 1998 stating that the PAPI System is 
essential to the safety of aircraft movements at San 
Francisco International Airport. 

2. The proposed lease would be retroactive to October 1, 
1998, and therefore the proposed resolution should be 
amended to provide for retroactive authorization. 

Recommendation: Amend the proposed resolution to provide for 

retroactivity, and approve the resolution as amended. 



Board of Supervisors 
Budget Analyst 
48 



"i i.". flv mi iuii 



0730 P. 2 
Attachment 




49 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

Item 12 -File 98-1958 



Department: 



Item: 



Amount: 

Source of Bond 
Repayment Funds: 

Description: 



San Francisco International Airport 

Ordinance appropriating $220,000,000 of San Francisco 
International Airport Second Series Revenue Bond 
proceeds for the construction of infrastructure projects 
including but not limited to the Bay Area Rapid Transit 
(BART) Extension to the Airport, and placing such bond 
proceeds on reserve pending sale of the bonds. 

$220,000,000 in aggregate principal 



Airport Revenues 

In June of 1994, San Francisco voters approved 
Proposition I, a policy statement urging that the BART 
system be extended to the Airport and directing the 
Airport Commission, as well as other San Francisco 
officers and agencies, to take all necessary steps to 
finance the line extension and the accompanying new 
BART station. 



In 1996, the BART extension became part of the Airport's 
Capital Plan. The Airport Commission and the BART 
Board of Directors approved an agreement to expand 
BART service to the Airport and the Board of Supervisors 
approved such agreement in November of 1996. 

A separate Five Party Agreement, signed in March of 
1997 by the City and County of San Francisco, the Airport 
Commission, BART, the Airport Transportation 
Association and United Airlines, calls for the Airport 
Commission to fund its contribution to the BART Airport 
extension with Airport Revenue Bonds. According to Mr. 
Bob Kuo of the Airport, that Agreement was not subject to 
approval by the Board of Supervisors. In June of 1997, the 
Board of Supervisors authorized the issuance of up to 
$220 million (in aggregate principal) of Airport Second 
Series Revenue Bonds, at a maximum interest rate on the 
tax-exempt bonds at 12 percent over a 30-year term. The 
authorization for the bond issuance and the Five Party 
Agreement set the Airport Commission's maximum 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

50 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

contribution for construction of the BART to the Airport 
Extension Project at $200 million, or 16 percent of the 
total project cost, estimated to be $1,224,000,000. 
Financing the BART to the Airport Extension Project will 
be funded from the following sources: 

Federal Transit Administration Grant $750,000,000 

Airport Second Series Revenue Bonds 200,000,000 

(subject of this proposed ordinance) 

State Funding 165,000,000 

San Mateo County Transit (SamTrans) 99,000,000 

Metropolitan Transportation Commission 10.000.000 

Total SI. 224, 000,000 

This proposed ordinance would appropriate $220,000,000 
from the previously authorized Airport Revenue Bond 
proceeds as follows: 

BART to the Airport Extension $200,000,000 

Construction Project 

Debt Service Reserve Fund* 15,950,000 

Bond Issuance Costs** 4.050.000 

Total $220,000,0000 

* Debt Sen-ice Reserve Fund in the amount approximately equal to 
the annual debt service on the bond issue. 

** Cost of Issuance includes $750,000 in financial advisers, bond 
counsel, rating agencies, financial printers and advertisers, as well as 
$3,300,000 to fund the Original Issue Discount/Underwriter's Spread, - 
which is defined as funds paid to the Underwriter in exchange for 
purchasing the bonds. 

Comments: 1. Attachment 1, provided by the Airport, contains a 

summary budget and an explanation for the $4,050,00 in 
Bond Issuance Costs. 

2. Attachment 2, provided by the Airport, includes a 
budget for the $200 million that would be allocated to the 
construction of the BART to the Airport Extension 
Project. 

3. According to Mr. Kuo, to date, $60 million of the total 
$220 million in previously authorized bonds have been 
sold. In April of 1998, the Airport issued $35 million in 
Second Series Revenue Bond Issue 17 at an interest rate 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

51 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



of 5.18 percent and in July of 1998, the Airport issued $25 
million at an interest rate of 5.13 percent. Mr. Kuo 
reports that the Airport anticipates issuing the remaining 
$160 million ($220 million authorized less $60 million 
already issued) in two installments in 1999 at an 
estimated interest rate of 6 percent. 

4. Mr. Kuo reports that the estimated total cost of the 
debt service for the $220 million in Airport Second Series 
Revenue bonds to be paid over the 30-year term would be 
approximately $479,482,816 based on the estimated 
interest rate of 6 percent. The average annual debt 
service would be $15,982,761. 

5. According to Ms. Kathryn Pennypacker of the City 
Attorney's Office, the subject supplemental appropriation 
ordinance in the amount of $220 million upholds the 
intent of the Board of Supervisors resolution and the Five 
Party Agreement. 



Recommendation: Approve the proposed ordinance. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

52 



Attachment 1 



ATTACHMENT 1 

CALCULATION OF ESTIMATED COSTS OF ISSUANCE 

$220 MTJLUIONSL^PLEMENTAL APPROPRIATION OF BON3>PROCEEDS 



COST CATEGORY 

BOND COUNSEL 
FINANCIAL AX) VISOR 
RATING AGENCY FEES 
PRINTING OFFICIAL STATEMENT 
SUBTOTAL PROFESSIONAL SERVICES 

UNDERWRITER'S GROSS SPREAD' 

TOTAL COSTS OF ISSUANCE 



EFTIMATE 

$260,000 
£250,000 
S 150,000 

2 -» _ . -■ ---• 
$750,000 

^ ™0 f>00 
$4,050,000 



• THE UNDERWRITER'S SPREAD IS SIMILAR TO A COMMISSION IT IS INCOME DERIVED BY THE UNDERWRITER 

IN EXCHANGE FOR PURCHASING THE BONDS THE -SPREAD' IS PAID FOR FROM THE PROCEEDS OPTHE BOND ISSUER 
THE COST ESTIMATED AT 1 .5% OF THE PAR AMOUNT OF BONDS TO BE SOLD ($220 MTLUON). 



X\BAR1\COSTOnSSL'E 



53 



Attachment ?_ 
BUDGET FOR USE OF S200 MILT JON IN "BART" BOND PROCEEDS 



The Airport intends to utilize the bond proceeds for the following components of the 
BART extension to SFO: 

1 ) S 1 1 3 million for construction of "fixed facilities", including: 

■ The overcrossing of Highway 101 

• The shared BART/AirTrain (the people-mover system) guideway 

• The shared BART/AirTrain station located adjacent to the new International 
Building 

• The "Link" building connecting the BART station to the new International 
Terminal B uilding 

• Enhancements to the International Terminal Building required as a result of 
the BART extension 



2) $87 million for the procurement of the following equipment and services for the 

BART extension: 

track work and appurtenances 

electric traction power systems 

communications and train control systems 

systems integration 

structures and appurtenances 

utilities and materials handling 

security and specialty systems 

pre liminar y engineering and administrative costs 



H:\Jcuo\dQcinicst\ban\S200m bodgrtdoc 



54 



Memo to Finance Committee 

December 9. 1998 Finance Committee Meeting 



Item 13 -File 98-1873 
Department: 

Item: 

Amount: 
Source of Funds: 
Description: 



Port Commission 
Department of Public Works 

Supplemental appropriation ordinance in the amount of 
$6,434,954 to fund various capital improvement projects. 

S6. 434.954 

San Francisco Harbor Operating Fund 

In July of 1998, the Port received a onetime payment of 
$8,500,000 in Federal and State transportation grant 
funds (File Nos. 517-98 and 141-88) from the Department 
of Public Works as compensation for the loss of revenue 
generating parking facilities displaced by the Mid- 
Embarcadero Roadway (which is currently under 
construction and is anticipated to be completed in 
January of 2000). Ms. Stephanie Downs of the Port states 
that these funds were not appropriated at the time and 
remain in the unappropriated revenues of the Port's 
Operating Fund. 

The proposed ordinance would appropriate $6,434,954 of 
the $8,500,000 previously received grant funds for 27 
capital improvement projects, as follows: 



Bulkhead Facade Painting 



$200,000 



Repainting of the facades of the bulkhead buildings 1 
between China Basin and Pier 39. 



Pier 43 V* 



105.000 



Reconstruction of the public access area as required by 
the San Francisco Bay Conservation and Development 
Commission (BCDC) at the northwest end of Pier 43 Vi, 
including the installation of Americans with Disabilities 
Act (ADA) deck area with historic pier bell and sound 
reflector. 



A bulkhead building is the land-side building structure in front of a pier. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

55 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



Ms. Downs advises that the actual estimated total cost of 
this project is approximately $470,000. Therefore, this 
project would require an additional $365,000 (actual 
estimated total cost of $365,000 less the requested 
amount of $105,000). According to Ms. Downs, the 
funding source of the additional $365,000 would be from 
previously appropriated monies in the Port's FY 1998-99 
operating budget. 

Predevelopment Studies $500,000 

Funding for pre-development studies, including site 
condition surveys, seismic upgrade reports and geo- 
technical evaluations, of Piers 15-17, 16-23, 27-29 and 70, 
the Western Pacific Site and the Embarcadero Triangle to 
determine the feasible uses of such sites by the Port. 

35' Gauge Crane Track Leveling 49,000 

Leveling of the grade at Pier 80 to allow 35' gauge crane 
trucks to travel on rail tracks around the corners of the 
pier. Ms. Downs advises that the actual estimated total 
cost of this project is approximately $59,000. Therefore, 
this project would require an additional $10,000 (actual 
estimated total cost of $59,000 less the requested amount 
of $49,000). According to Ms. Downs, the funding source 
of the additional $10,000 would be from previously 
appropriated monies in the Port's FY 1998-99 capital 
budget. 

Asbestos Removal 150,000 

Removal of asbestos from three Port buildings at Pier 50. 

Embarcadero Terminus Improvements 123.296 

Installation of light poles and electrical conduit, metal 
guardrail, access ladders and a disability accessible 
drinking fountain in the public access space located south 
of the Agriculture Building and east of The Embarcadero 
Roadway, called the Embarcadero Terminus. The Mid- 
Embarcadero Project includes, but does not fund, the 
above-noted improvements to the Embarcadero Terminus. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

56 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



As a result, the Port must provide the funding for these 
improvements. 

Fisherman's Wharf Stall Piles $120,000 

Replacement of 200 deteriorated stall piles that are used 
for berthing ships at the Fisherman's Wharf Lagoon. 

Pier 80 Fender Repair 600,000 

Repair of the deteriorated fender system 2 at Pier 80. 

Piers 3. 29 and 31 Parapet Flashing 50,000 

Replacement of the flashing on the top of the parapets 3 of 
the bulkhead buildings at Piers 3, 29 and 31. 

Roundhouse Plaza's ADA Compliance 150,000 

ADA improvements to lighting and fire alarm systems, 
guardrails and handrails, signage, door hardware and 
restroom facilities at the Roundhouse Plaza, located at 
1101 Embarcadero Avenue, which is currently leased to 
various commercial tenants. 

Pier 48 

Electrical Service & Roof Replacement 583,000 

Upgrade of electrical service and replacement of the roof 
at Pier 48, which is currently vacated, but is expected to 
be leased to various commercial tenants after the 
improvements are completed. 

Pier 26 Roof Replacement 280,000 

Replacement of the deteriorated roof at Pier 26, which is 
currently leased to various commercial tenants. 

Ferry Terminal Improvements 321,036 

Partial funding for additional improvements of the 
Downtown Ferry Terminal Project, including the 



2 A fender system buffers the contact between a ship and the pier. 

3 A parapet is a low protective wall or barrier at the edge of a balcony or roof. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

57 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



construction of the South Terminal Gangway Covered 
Canopy, Ferry Building East Promenade Covered Canopy 
and East-West Breakthrough, signage and site 
furnishings. The Downtown Ferry Terminal Project has a 
construction contract of approximately $15,000,000, 
which is funded with grants from the California 
Transportation Commission and the Federal Highway 
Administration. Ms. Downs advises that the actual 
estimated total cost of the above-noted additional 
improvements to the Downtown Ferry Terminal Project is 
approximately $1,400,000. Therefore, the proposed 
improvements would require an additional $1,078,964 
(actual estimated total cost of $1,400,000 less the 
requested amount of $321,036). According to Ms. Downs, 
the funding source of the additional $1,078,964 would be 
from (1) previously allocated monies in the amount of 
$40,000 in the Port's FY 1998-99 capital budget and (2) 
previously appropriated 1994 Port Commission Bond 
funds in the amount of $38,864, leaving a still unfunded 
balance of $1,000,100 for this project. Ms. Downs states 
that the Port plans to allocate monies from its proposed 
FY 1999-2000 capital budget to fund this unfunded 
balance of $1,000,100. 

Port ADA Transition Plan $100,000 

ADA improvements to various areas of the Port, including 
the installation of accessible telephones, pay phone signs 
for the hearing impaired, a headroom guardrail in the 
Ferry Building common areas, interior signs in Port 
offices, accessible seating signage and an accessible 
microphone in the Port Commission room, signage of 
accessible parking spaces at the Pier l /: Northern 
Downtown Fern,' Terminal and remodeling of restroom 
facilities at the Pier 35 Passenger Terminal. 

Ms. Downs advises that estimated total cost of this project 
is approximately $312,000, including $100,000 for the 
proposed subject improvements and $212,000 for future 
ADA improvements to the Port. As a result, this project 
would require an additional $212,000 (actual estimated 
total cost of $312,000 less the requested amount of 
$100,000). According to Ms. Downs, the Port intends to 
allocate monies from its FY 1999-2000 and 2000-2001 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

58 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



capital budgets to fund tbe additional estimated need of 
$212,000. 

Pier 47A $498,107 

Partial funding for the reconstruction of Pier 47A, 
including driving new piles, building the deck and 
providing water, lighting, benches and mooring facilities 
for boats at the pier. 

Pier 52 Electrical Pole Relocation 65,000 

Partial funding for the relocation of the 
electrical/telecommunication poles located around the 
perimeter of the future parking lot of the future Pier 52 
Boat Launch. 

Pier 92 Fender Pile Replacement 90,000 

Replacement of 92 broken or deteriorated fender piles 4 at 
Pier 92. 

Pier SOB Maintenance Dredging 552,050 

Dredging of 62,000 cubic yards of material from Pier SOB 
to a depth of 35 feet to allow for additional berthing space 
at the pier. According to Ms. Downs, the Port is currently 
unable to shelter cargo ships at this pier because the 
water around the pier is too shallow to effectively buoy 
such ships. Ms. Downs advises that the Port has awarded 
the contract for this project to the Dutra Dredging 
Company, which submitted the lowest bid in accordance 
with the City's competitive bidding procedures. 

Pier 80A Maintenance Dredging 561,100 

Dredging of 61,000 cubic yards of material from Pier 80A 
to a depth of 40 feet to accommodate Columbus-Blue Star 
Cargo Companies, the Port's new tenant at the pier. Ms. 
Downs advises that the Port has awarded the contract for 
this project to the Dutra Dredging Company, which 



4 A fender pile system create a series of channels in the harbor that guide ships away from shallow 
water. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

59 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



submitted the lowest bid in accordance with the City's 
competitive bidding procedures. 

Pier 43 Restoration of Arch $100,000 

Funding to pay for the Port's fire insurance deductible for 
the Pier 43 Arch which is a historic arch structure at 
Fisherman's Wharf that was damaged by fire in July of 
1998. 

Pier 35 West Maintenance Dredging 350,000 

Dredging of 26,000 cubic feet yards of material from Pier 
35 West to a depth of 30 feet to allow the Port to dock two 
cruise ships at this pier at the same time. According to 
Ms. Downs, the Port is currently unable to shelter cruise 
ships at this pier because the water around the pier is too 
shallow to effectively buoy such ships. Ms. Downs advises 
that the Port has awarded the contract for this project to 
the Dutra Dredging Company, which submitted the 
lowest bid in accordance with the City's competitive 
bidding procedures. 

China Basin Park Shoreline Stabilization 592.200 

Reconstruction of the China Basin Channel seawall, 
located east of Third Street, to allow for required BCDC 
improvements to the area near the future Pacific Bell 
Park. According to Ms. Downs, the Port agreed to 
reconstruct the subject seawall as a condition of receiving 
the required BCDC permit for the Port to lease the site of 
the future Pacific Bell Park to the Giants. 

Replace Pile Driver Hammer/Leads 21,350 

Replacement of the Port's aging pile driver equipment 
used to drive wood piles (which support the piers) into the 
shoreline. 

Grotto #9 Replace Sewer Main 84,815 

Replacement of 600 feet of the deteriorated 6" main sewer 
pipe from Grotto No. 9 Pump Station to Jefferson Street. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

60 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

Harbor Patrol Boat $20,000 

Funding for the purchase of an 18' motor boat to be used 
by harbor staff to patrol the Port and collect daily dockage 
fees from vessels that anchor outside the Port in the 
lagoon. Presently, the Port's wharfingers do not have 
their own boat and instead borrow a boat from Port's 
Maintenance Department to perform the above-noted 
duties. Ms. Downs states that the Port's Maintenance 
Department often cannot loan a boat to the wharfingers 
and as a result, the wharfingers are unable to collect the 
daily dockage fees or respond to emergencies as quickly as 
is needed on boats anchored outside the Port. 

Ferry Building Carillon Chime 19,000 

Replacement of the broken carillon chime system. A 
carillon chime system announces the time of day with a 
musical melody. Ms. Downs advises that the existing 
carillon chime system is not repairable and as such, must 
be replaced with a new carillon chime system. Ms. Downs 
also advises that the actual estimated total cost of this 
project is approximately $27,000. Therefore, this project 
would require an additional $8,000 (actual estimated 
• total cost of $27,000 less the requested amount of 
$19,000). According to Ms. Downs, the funding source of 
the additional $8,000 would be from previously 
appropriated monies in the Port's FY 1998-99 operating 
budget. 

Emergency Seawall Repair 150,000 

Emergency repair to the seawall lot, located on Seawall 
302 near Wharf J6 and Jones Lane, which supports Jones 
Lane along the shoreline. 

Budget: According to Ms. Downs, the total estimated cost for the 

proposed 27 capital improvement projects is $8,193,818, 
or $1,758,864 more than this request of $6,434,954. As 
previously noted, this additional $1,758,864 would be 
provided from previously appropriated Port operating and 
capital improvement funds and from future Port 
operating and capital improvement budgets. Attachment 
I, provided by Ms. Downs, contains the total estimated 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

61 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



cost for the proposed 27 capital improvement projects in 
the amount $8,193,818, including this request of 
$6,434,954, and descriptions for each project. 

Ms. Downs states that the proposed 27 capital 
improvement projects would be performed by either in- 
house civil service Port personnel or outside contractors 
pursuant to the City's competitive bidding procedures. 
Attachment II, provided by Ms. Downs, describes which 
projects would be constructed by in-house civil service 
Port personnel and which projects would be performed by 
outside contractors. 



Recommendation: Approve the proposed ordinance. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

62 



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63 



AMENDED CAPITAL PLAN 1998/99 
PROJECT DESCRIPTIONS 

Bulkhead Facade Painting and Lighting £200,000 

Paint bulkhead facades that have not been painted since 1 9S4 and are in a deteriorated condition- 
Repainting is necessary both for preventative maintenance and to make the property easier to 
lease. The estimate is to paint all bulkhead buildings between China Basin and Pier 39. 

Pier 43 X A S470,OO0 

The purpose of this project is to reconstruct the public access area required by BCDC at the 
northwest end of Pier 43 X A. The project will include an .ADA accessible deck area for viewing 
and will display a 1600-pound historic pier bell and sound reflector. Tne breakdown of the 
funding for the total project cost of S470.000 is as follows: 

Pier Reconstruction 
ADA required platform 
Bell frame and installati on 
Sound reflector 
Lighting 
Total 

The amount provided from the capital plan together with the amount allocated in the facilities 
maintenance budget fully fund this project • 

Pre-Development Studies S500.000 

These studies are necessary to produce information needed for inclusion in RPPs for 
development sites. These studies include condition surveys, seismic upgrade requirements, geo- 
tcchrucal evaluation and economic studies. Having this information is essennaj to the success of 
the RFP. Requested funding is for studies for Pier 70, the Western Pacific Site, Piers 15-17, 
Piers 16-23, Piers 27-29, and the Embarcadcro Triangle. It is intended that this fund be 
replenished from pre-developmcnt fees to be charged to the developers when contracts are 
eventually awarded. 



jital Plan 


Operating Budget 


SO 


S270.000 


30,000 


35,000 


30.000 


45,000 





15,000 


45.000 





S105.000 


S365.000 



64 



35' Gauge Crane Track Leveling 



Page 3 of i 
559,000 



Capital Plan Previously Funded 
S49,000 510,000 



Level the grade for the 35' gauge crane tracks to allow cranes to be moved, around the comer. 
The two 34 foot gauge craDes at Pier 80 have articulated trucks that are designed to travel around 
the comers of the pier. Due to settling, one of the rail tracks is lower than the other track on one 
of these corners, causing the wheels on the 'truck to derail wheD the crane is maneuvered around 
the comer. A forklift has been used to position the derailed truck in the past, which is an unsafe 
practice. 



Asbestos Removal 



5150,000 



The purpose of this project is to -manage or remove asbestos from several Port buildings. The 
funding will be used to clear the way for necessary building repairs, readying property for 
leasing, and for public or employee health emergencies. The money will be work ordered to the 
Department of Public Works that has standing contracts with several asbestos consultants and 
contractors. 



Embarcadero Terminus Improvements 



5123,296 



Tnc Waterfront Transportation Mid-Embarcadcro project includes improvements to the public 
access space located just south of the Agricultural Building and east of The Embarcadero 
roadway, called the Embarcadero Terminus. The Mid-Embarcadero project includes, but does 
not fund, the installation of the following improvements: new light poles and electrical conduit, 
new metal guardrail, new access ladders, and a new disability accessible drinking fountain. The 
existing guardrail is corroded and will soon pose a safety haza r d The new accessible drinking 
fountain will be the only accessible drinking fountain on the southern waterfront. The Port must 
provide the funding or the work described will be deleted from the project 



Fisherman's Wharf Stall Piles 



5120,000 



This project will replace deteriorated stall piles at the Fisherman's Wharf Lagoon adjacent to 
Scoma's Restaurant. The stall piles are used for delineating berth locations and berthing the 
Eshing vessels. There are 200 piles currently requiring replacement. Most of these piles will be 
used for 56 berths that generate approximately $22,000 per year in rent. Payback for this project 
is 5.5 years. 



Pier 80 Fender Repair 



S600,000 



The recent agreement that the Port has completed with Marine Terminals Corporation requires 
the Port to maintain the fender system at Pier 80. Maintenance has been deferred for the past 
four years since cargo operations were suspended at Pier 80. Due to previous wear and tear and 
the effects of time, the fender system requires repair in order for vessels to continue to be safely 
accommodated at the pier. 



65 



Atcacrcrgnt 
Tape U of ? 



Piers 3, 29 & 31 Parapet Flashing S50,000 

Bulkhead buildings at Piers 3, 29 and 31 need to have the flashing on the top of the parapet 
replaced due to deterioration. The flashing deterioration was discovered during the Cornice 
Repair Project and is believed to be a critical factor leading to the initial cornice failure. If this 
flashing is not replaced water will continue to intrude behind the new plaster facade cornice and 
cause water damage to the new wood and plaster nailing. Water damage could create an unsafe 
condition and become a hazard for pedestrians using the walkway below. This is a public safety 
project that allows the Port continued safe use of these facilities. 

Roundhouse Plaza ADA Title 24 Compliance S150,000 

The Roundhouse Complex underwent extensive renovations in 1983-84 and has a high level of 
quality improvements. However, these improvements are not fully compliant to current 
standards relating to accessibility. Non-conforming items include li ghtin g and fire alarm 
systems, guardrails and handrails, signage, door hardware, and bathroom facilities. This project 
will bring all non^omonning items into compliance. Annual gro^s revenues from the 
Roundhouse Plaza are $803 ,500. 

Pier 48 Electrical Service and Roof Replacement S583,000 

Pier 48 is currently vacant and undergoing two major repair projects: the Seismic Stabilization 
Project which is being funded by FEMA, and the Fire Damage Repair Project which is being 
funded with insurance proceeds. However, in order to optimize the leasing potential of this pier, 
the facility needs an upgraded electrical service and a new roof over the portion of the pier that 
didn't suffer fire damage. 

The Port's Electrical Engineer has estimated that an upgraded electrical service wnth a minimal 
distribution system to both sheds would cost approximately $320,000. The Port's Maintenance 
Department has estimated the cost of the roof replacement to be S263.0O0. The combined total 
cost of the two projects is $583,000. 

Without the upgraded electrical system and roof replacement, projected market rent for the 
facility is approximately $0.35 a square foot. With the upgraded electrical system and roof 
replacement the market rent is projected to "be $0.50 per square foot. The incremental increase 
equates to $0.15 per square foot as follows: 

• Projected income: 

1 60,000 square feet @ $0.50 - S80,000 per month S960.000 annual income 

160,000 square feet @ $0.35 = $56,000 per month S672.000 annual income 

Incremental Increase S24,000 per month $288,000 annual income 

• Annual revenue as percentage of cost: 49.4% 

• Payback period: 2.0 years 



66 



Attachment 1 
Paee 5 of 5 



Pier 26 Roof Replacement S280,000 

The roof for Pier 26 is in poor condition and needs to be replaced. Tne estimated cost of tins 
roof replacement includes sheet metal work. The roof replacement needs to be completed in 
order to (1) protect the facility from farmer deterioration, (2) provide tenants with a water-tight 
environment, (3) retain current revenues, (4) lease remaining vacant space and (5) raise rents to 
market 

To date, approximately 18,960 sqVft out of a total 102,400 rentable sqVft remain vacant This is 
due to the very poor condition of the roof in specific areas that are unleasable. The ongoing 
leaks contribute to the deterioration of the structural integrity of the f acuity by promoting dry rot 
of the wooden structural components. This in time leads to major structural repairs at a much 
higher cost 

Projected market rent for the facility is approximately S0.50 per square foot. The current 
average rent at the facility is $0.34 per square foot The incremental increase equates to $0.16 
per square foot as follows: 

• Projected income: 

102,400 square feet @ $0.50 = $5 1,200 per mo. $614,400 projected annual income 

83,407 square feet @ $0.34 = $28,358 per mo. $340296 current annual income 
Incremental Increase $22,842 per mo. $274,104 per year 

• Annual revenue as percentage of cost: 108.2% 

• Payback period: 1 year 

Downtown Ferry Terminal Additional Improvements $1,400,000 

Capital Plan Previously Funded Unfunded 

$321,036 $78,864 $1,000,100 

The Downtown Ferry Terminal Project has a construction cost of over $15,000,000, which is 
funded with grants from the California Transportation Commission and the Federal Highway 
Administration. Due to thinly stretched resources, the funding of approximately $400,000 will 
provide for staff to hire a project manager to assist with over-site of the project construction. 

The additional appro ximate ly $1,000,000 needed, but currently unfunded, would provide for the 
following improvements: 

South terminal gangway covered canopy $225,000 

Ferry Bunding east promenade covered canopy 2 1 0,000 

Signage and site furnishings 165,000 

Ferry Building east-west breakthrough 400,000 

Total $1,000,000 



These improvements can still be added at a later dat: 



67 



Port ADA Transition Plan 



Attachment I 
Page 6 of 9 



5312,000 

Funded Unfunded 

5100,000 5212,000 

This project funds Phase 1 of the Port's estimated S3 12,000 ADA Transition Plan. The funding 
provided will be used to make physical improvements to public facilities to make them 
accessible. Tnc Phase 1 improvements include installation of accessible telephones, TDD pay 
phone signs, a headroom guardrail in the Ferry Building common areas, interior signs in Port 
offices, accessible seating signage and accessible microphone m the Port Commission room, 
signage at accessible parking spaces at the Pier Vi Northern Downtown Ferry Te rminal and 
remodeling of the rcstrooms at the Pier 35 Passenger Terminal to make them accessible. 

The Port requires in its lease agreements that tenants be responsible for all accessibility features 
of their respective premises, and to comply with the provisions of both the ADA and the building 
code. 

Pier 47A Additional Funding 5498,1 07 

The Port approved funding in the amount of S928.000 for the rcconstrucnon of Pier 47a in the 
1996/97 Capital Plan. The reconstructed Pier size will be 226 feet long and 16 feet wide. The 
end of the pier will bulb out, providing a public access area and viewing platform for the 
disabled. The construction will involve driving new piles, constructing the deck, and providing 
for water, lighting, benches, ? n<1 mooring facilities for boats. 

Approved funding consists of a 5528,000 grant from the Department of Transportation, and 
S4O0,0O0 in Port Funding. The Port advertised the project for bid in May 1998, however, was 
not able to award to the low bidder as there was not sufficient funding available to accommodate 
the bid. This additional funding of 5498,107 is necessary to proceed with the project. 

Pier 52 Electrical Pole Relocation S65,000 

This project will fund the relocation of the electrical/'lclccommunication poles located around the 
perimeter of the future parking lot that will serve the future Pier 52 Boat Launch. The relocation 
of these pole/lines are necessary to meet the State Department of Boating and Waterways (Cal 
Boating) guidelines regarding the hazard of overhead utility lines around boat launches and 
parking lots which may electrocute boaters with masts set-up. The Pier 52 Project is currently 
being funded by Cal Boating for approximately 5493,000 to construct the Boat Launch and the 
Parking Lot However, the grants do not cover the costs to relocate the cJcctncal poles. 

The Port included 585,000 in the 1997/98 Capital Plan to underground these poles, however, 
P.G.&E. will not underground a "redevelopment district." The Pier 52 Project is close to the 
proposed Mission Bay redevelopment district so it cannot be undergrounded at this time. This 
S65.00O funding when combined with the 585,000 funded in the 1997/98 plan should be 
sufficient to fund the relocation of the poles. 



68 



Attacmnent I 
?aee 7 or 9 



Fender Pile Replacement at Pier 92 S90,000 

Pier 92 has ninety fender piles that are either broken or deteriorated and if not replace soon will 
render this berth unusable. There are currently 3 to 4 tallow vessels berthing at the facility each 
month as part of the Darling Delaware operation. In addition, Pier 92 has daily barge calls for 
Mission Valley rock. Annual revenue currently totals 5450,000 for this Pier. Payback on the 
project is 3 months. 

Pier 80B Maintenance Dredging 5552,050 

This project would fund the dredging of 62,000 cubic yards of material from Pier 80B to a depth 
of 35 feet. The dredging is necessary to allow the Port additional berthing space for its multi-use 
cargo facility at Pier 80. Berth 80B would be used for break bulk and non-containerized cargo. 

Pier 80A Maintenance Dredging 5561,100 

This project would fund the dredging of 61,000 cubic yards of material from Pier 80A to a depth 
of 40 feet The project is needed to accommodate Columbus-Blue Star Lines, the Ports new 
tenant at Pier 80. 

Restoration of Pier 43 Arch SI 00,000 

The historical Pier 43 Arch suffered severe fire damage on July 14, 1998. The amount allocated 
is intended to cover the Port's fire insurance deductible on repair or replacement of the structure. 

Pier 35 West Maintenance Dredging 5350,000 

This project would fund the dredging of 26,000 cubic yards of material from Pier 35 West to a 
depth of 30 feet The project is needed to allow the Port to dock two cruise ships at Pier 35 at the 
same time. Pier 27 is no longer available to dock cruise ships because it is occupied by a 
MARAD ship. 

China Basin Park Shoreline Stabilization 5592,200 

Tnis project would fund the reconstruction of the China Basin Channel seawall cast of Third 
Street. The San Francisco Bay Conservation and Development Commission ("BCDC") issued a 
permit in October 1997 to the Giants and the Port as co-permittees authorizing work necessary 
for development of a Ballpark at the comer of Third St. and King street. The BCDC permit 
requires the co-permittccs to maintain certain public access areas and improvements, and 
specifically requires the development of a public access area consisting of approximately 85,000 
to 100,000 square feet from the top of the bank along the southern shoreline at the Bay end of 
China Basin C hann el and extending from Lefty ODoul Bridge to the public access area at 
Pier 48 ("China Basin Park"). 



69 



In addition to the Ballpark lease, the Port and the Board approved a 1 year Panting Lease which 
allows the Giants to construct surface parking improvements at Third St. and Terry Francois 
Boulevard. This location is directly across the street from China Basin Park. Since China Basin 
Park is outside the premises subject to both the Ballpark Lease and the Parking Lease, in 
November 1997 the Port issued a Permit to the Giants in which the Giants agreed to construct 
China Basin Park, and to maintain it for a term of 10 years, coincident with the term of the 
Parking Lease. The Port has agreed to maintain China Basin Park for the remaining term of the 
BCDC Permit. 

Port engineers have subsequently determined that the existing shoreline of China Basin Park 
along the channel is structurally unstable. In addition, tidal action from the Ferry Terminal to be 
built in China Basin C hann el across from the park will cause further demise to the shoreline and 
cause the park to erode into the bay. This project is necessary to maintain the existing shoreline 
and prevent further erosion. 

Piledriver Equipment Replacement S21350 

The piledriver is estimated to be 4-0 years old. Age and the stress on the hammer/leads maki»c it 
extremely difficult to repair. The equipment is used to work on repairing and replacing Port 
marine structures such as piers, sheds, substructures and fender systems. The current piledriving 
equipment no longer meets today's standards for productivity and safety. 

Replace Sewer Main from Grotto #9 to Jefferson St. S84,815 

This project will fund the replacement of 600 feet of 6" forced main sewer pipe from Grotto #9 
pump station to Jefferson St. In the past 2 years, the Port plumbing department has repaired this 
pipe six times. It has now deteriorated beyond repair and is in imminent danger of dumping 
untreated waste water directly into the Bay. 

Fisherman's Wharf Harbor Patrol Boat S20.000 

A boat is required to patrol the facilities for environmental and safety issues. In an emergency, 
such as an oil spill, fire or earthquake, a boat adds a waterside response that is not presently 
available. The boat would also enable the harbor staff to monitor and collect fees from vessels at 
anchor in the lagoon. Tne presence of a harbor patrol boat would also increase the visible 
authority of Port personnel and enhance the dockage collection capability. The wharfingers do 
not currently have a patrol boat. 

Ferry Building Carillon Chime* S27,0O0 

Capital Plan Operating Fund 

S19,000 58,000 

The project will fund the replacement of the existing Carillon system with a new state of the art 
digital Carillon system. Tne current system is approximately 25 years old, is not functiouing, 
and cannot be repaired. 



70 



RUG 03 '94 12: 16AM P.y/lU 

Attachment I 
Page 9 of 9 

Emergency Seawall Repair 5150,000 

Tne seawall lot located on Seawall 302 near Wharf J6 and Jones Lane has deteriorated to the 
point that collapse is possible and immediate repairs are needed. If the seawall were to collapse, 
the adjacent retail fish outlet building would be in danger of shifting into the bay. Outside 
engineering services will be used to design the repair plans and an outside construction 
contractor is needed to perform the repair. The Port does not have in-house engineering 
resources to prepare the design or maintenance staff to perform the required construction work. 



71 



AUG 03 '54 04:38AM 



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72 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

Item 14 - File 98-1909 



Departments: 



Item: 



Description: 



Public Utilities Commission (PUC) 
Department of Real Estate (DRE) 

Resolution authorizing the sale by the PUC of an 
easement of 10-foot wide property to the City of Hayward, 
designated as surplus property by the PUC. The subject 
property is identified as the Newark to Hayward 
Aqueduct located in Newark, Fremont, and Union City in 
Alameda County. 

Easement Owned By City and County of San 
Francisco 



Across certain designated lands known as the "Easement 
Area," the City and County of San Francisco has owned 
the subject easement since the 1930's, and still owns the 
easement measuring 40 feet wide. The rights attached to 
this ownership include the right to install, use, operate, 
and maintain water pipelines. 

Water Sale Agreement of 1961 

The City and County of San Francisco entered into an 
agreement with the City of Haj'ward on November 14, 
1961, for the sale of Hetch Hetchy water to the City of 
Hayward (the "Water Sale Agreement"). (PUC Resolution 
No. 21832 adopted on February 26, 1962). 

Water Pipeline Constructed 

With the permission of the PUC, the City of Hayward 
constructed a 42-inch water pipeline in the Easement 
Area in 1966, in order to allow for the sale of Hetch 
Hetchy water to the City of Hayward (Newark to 
Hayward Aqueduct). The City of Hayward presently uses 
the subject property for receiving Hetch Hetchy water 
through the Newark to Hayward Aqueduct in the 
Easement Area. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

73 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

Hayward's 1981 Offer to Purchase Easement 

In 1981, the City of Hayward offered to purchase that 
portion of the Easement in which its aqueduct was 
already constructed at the purchase price of $1,000 
("Easement"). 

Comments: 1. PUC Resolution Approved Sale of Easement 

On October 14, 1997, the PUC approved a resolution 
(Resolution No. 97-0274) granting a 10-foot wide 
easement to the City of Hayward for the Newark to 
Hayward Aqueduct in the Easement Area in 
consideration of a $1,000 payment from the City of 
Hayward and authorizing the General Manager of the 
PUC to execute an easement and any necessary 
additional documentation required to effectuate the grant 
of such easement. 

2. Nominal Value of Easement 

According to Mr. Pameri, the present nominal value of the 
subject Easement being sold to the City of Hayward is 
S2.500, which represents the DRE's minimum 
administrative fee for processing the necessary 
documents. According to Mr. Panieri, because the City of 
Hayward has already constructed a pipeline, the Newark 
to Hayward Aqueduct, on the subject Easement, and 
because Hetch Hetchy water is sold to the City of 
Hayward through this Newark to Hayward Aqueduct 
under the Water Sale Agreement of 1961, the $2,500 
amount also represents the fair market value of the 
subject Easement. 

However, both Mr. Panieri and Mr. Gary Dowd of the 
PUC state that the sale price of $1,000 represents the sale 
price which was negotiated between the City of Hayward 
and the PUC in 1981. Mr. Dowd explains that numerous 
attempts to execute the sale of the subject Easement have 
been made since 1981, but that delays in executing the 
sale were caused by both the City of Hayward and the 
City and County of San Francisco. As a result, according 
to Mr. Dowd, the final sale of the subject Easement has 
not yet been executed. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

74 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

3. Maintenance, Insurance, and Indemnification 

According to Mr. Charles Sullivan, Deputy City Attorney, 
under the terms of the deed, the City of Hayward 
(Hayward) will be responsible for all maintenance, repair, 
and insurance costs for Hayward's uses in the Easement 
Area. Mr. Sullivan further explains that under the terms 
of the deed, the City of Hayward would indemnify the 
City and County of San Francisco from all claims and 
liabilities arising from Hayward's use of the Easement 
Area. 

Recommendation: Approval of the proposed resolution is a matter of policy 

for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

75 



Memo to Finance Committee 

December 9. 1998 Finance Committee Meeting 

Item 15 - File 98-1917 



Department: 



Item: 



Description: 



Department of Real Estate (DRE) 
Department of Public Works (DPW) 

Resolution (1) approving an exchange agreement between 
the City and County of San Francisco and the Peninsula 
Corridor Joint Powers Board (JPB), wherein the JPB will 
permanently quitclaim to the City JPB's rights to an 
easement in a parcel of land which is adjacent to King 
Street, between 5 th and 6 th Streets. In exchange for this 
easement, the City will transfer a temporary easement to 
the JPB in an area of land that encroaches King Street, 
between 4 th and 5 th Streets and (2) adopting findings 
pursuant to the City Planning Code Section 101.1. 

In 1995, the City undertook the King Street Project to 
expand King Street between 3 rd and 6 th Streets and 
extend its MUNI Metro light rail line within that 
expanded King Street area. To facilitate the construction 
of this project, the Catellus Development Corporation 
donated to the City a parcel of land located on the north 
side of King Street between 5 th and 6 th Streets. 



According to Mr. John Panieri of the Department of Real 
Estate (DRE), currently this parcel of City-owned land is 
encumbered by an easement, which is approximately 
8,766 square feet and is owned by the Peninsula Corridor 
Joint Powers Board (JPB). Currently, the JPB uses this 
easement to support tracks and maintenance facilities for 
its CalTrain commuter rail line that terminates in the 
vicinity of the King Street Project. 

Mr. Panieri states that the Peninsula Corridor Joint 
Powers Board has agreed to permanently quitclaim to the 
City all of its rights to this easement at no cost to the 
City. According to Mr. Panieri, the City would use the 
easement in its above-mentioned plans to expand King 
Street. 

According to Mr. Panieri, in exchange for the JPB's 
agreement to permanently quitclaim to the City an 
easement at no cost to the City, the City will reimburse 
the JPB an estimated $576,276 for removing its CalTrain 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

76 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

rail tracks and relocating its CalTrain rail car 
maintenance facilities from the easement (see Comment 
No. 1). In addition to the above-noted reimbursement, 
Mr. Panieri states that the City will grant the JPB a 
temporary easement at no cost to the JPB to support the 
JPB's current encroachment into King Street between 4 th 
and 5 th Streets, specifically into approximately 2.375 
square feet of the north sidewalk area of the King Street 
Project. The JPB uses this easement as a railroad yard 
for its CalTrain rail line system. 

According to this proposed resolution, the City's grant of a 
temporary easement to the JPB would be valid as long as 
the JPB operates its CalTrain station in its present 
location at 4 th and King Streets and complies with the 
terms of the temporary easement agreement between the 
City and the JPB. 

Mr. Panieri states that the DRE cannot report on the fair 
market values of the JPB's quitclaim of its permanent 
easement to the City or the City's grant of a temporary 
easement to the JPB because the proposed agreement 
between the City and JPB contains a provision which 
requires both parties to waive their rights to appraise the 
subject easements. The text of the proposed waiver 
provision is as follows: 

The parties hereby waive any and all real property 
appraisals which they may be entitled to under federal, 
state and local law. 

Comments: 1. According teMr. John Pons of the Department of Public 

Works (DPW), the removal of the tracks and relocation of 
the maintenance facilities from the easement will be 
performed by the JPB. Mr. Pons states that this removal 
and relocation work is part of a larger JPB project, with 
estimated costs totaling $1,234,680, to improve its 
CalTrain rail fine system. As noted above, the City would 
reimburse the JPB an estimated S576.276, or 
approximately 47 percent, of such costs for the removal 
and relocation work to be completed by the JPB. 
According to Mr. Pons, the source of funds for this 
reimbursement to JPB would be from previously 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

77 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



appropriated Federal Highway Administration grant 
funds. 

2. According to Ms. Robin Reitzes of the City Attorney's 
Office, as part of the negotiations between the City and 
the JPB for the JPB to quitclaim its easement to the City, 
the City agreed to reimburse the JPB for removing its 
CalTrain rail tracks and relocating its CalTrain rail car 
maintenance facilities from the easement in the parcel of 
land donated to the City by the Catellus Development 
Corporation. Ms. Reitzes advises that this parcel of land 
is burdened by an easement owned by the JPB and as 
such, the JPB has pre-existing property rights to use the 
easement to support its rail yard. According to Ms. 
Reitzes, since the City requires the easement to build the 
King Street frontage road, the City has agreed to pay for 
the removal and relocation costs to be incurred by the 
JPB. 

3. The Director of Planning has declared that the 
proposed exchange of easements between the City and the 
JPB is consistent with the Priority Policies of Section 
101.1(b) of the Planning Code and with the City's General 
Plan. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

78 



Memo to Finance Committee 

December 9. 1998 Finance Committee Meeting 

Item 16 -File 98-1923 

Departments: Recreation and Park Department (RPD) 



Item: 



Pvesolution approving the first amendment to the lease 
between the City of San Francisco and the Golden Gate 
Yacht Club (Club) (a) to reduce the rental rate from 10% 
to 7.5% of gross monthly revenues, representing a 
reduction of 25% payable by the Golden Gate Yacht Club 
to the City, and (b) to reduce the lease term from 40 years 
to 30 vears. 



Location: 

Purpose of 
Lease Agreement: 



Marina Yacht Harbor 



To operate and recreational boating and racing oriented 
yacht club. 



Lessor: 
Lessee: 
No. of Square Feet: 

Term of Lease: 



Rental Payment 
from Lessee to City 



City and County of San Francisco 

Golden Gate Yacht Club (the Golden Gate Yacht Club) 

Under the terms of the original lease agreement, the 
subject property consists of a total land and water area of 
31,256 square feet. 

The current term of the lease is 40 years, commencing 
June 1, 1992 and terminating on May 31, 2032. The 
proposed lease amendment would reduce the current term 
of the lease by 10 years, from 40 years to 30 years, 
expiring on May 31, 2022. 

Under the original lease, the rental rate is 10% of gross 
receipts. The proposed rental rate is 7.5% of gross 
receipts. 

Attachment 1 provided by Mr. Ernie Prindle of the 
Recreation and Park Department contains the annual 
gross revenues and annual rental payments due from the 
Club to the City over the past five years under the rental 
rate of 10% and the projected annual gross revenues and 
projected rental payments due from the Club to the City 
under the proposed rental rate of 7.5% for the remaining 
23 years of the proposed reduced lease term. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

79 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



Based on the data contained in Attachment 1, Mr. Prindle 
projects, that over the remaining 23 years of the proposed 
reduced lease term, the City would receive $734,841 less 
from the Club at the proposed rental rate of 7.5% than the 
City would receive at the existing rental rate of 10%. 



Fair Rental Rate 
Adjustment: 



Description: 



Under the proposed amended lease, the rent would be 
adjusted to fair market rent on June 1, 2002 and on June 
1, 2012. Mr. Prindle, states that he is unable to project 
the fair market rentals at those times and whether such 
adjustments to the fair market rentals will result in 
higher or lower rental rates. 

The Golden Gate Yacht Club is a nonprofit operation 
which, under the terms of the original lease provides a 
"clubhouse with amenities for family type participation," 
"a meeting room and dining facilities," for the "use of 
marine oriented organizations," "yacht club functions," 
and "banquet and event functions." In April of 1992, the 
Board of Supervisors adopted Ordinance No. 25-92 which 
approved a lease between the Golden Gate Yacht Club 
and the City and County of San Francisco for the purpose 
of operating a yacht club. 

On April 10, 1997, the City gave a notice of default to the 
Golden Gate Yacht Club regarding certain alleged 
breaches by the Golden Gate Yacht Club of its obligation 
under the Lease to pay percentage rent, install and 
maintain bookkeeping and accounting methods, maintain 
adequate books and records and provide auditors reports 
to the City. The Golden Gate Yacht Club disputes all of 
these allegations. 

The Club now reports that the 10% rental rate, to which 
it had previously agreed on in the existing lease, was too 
high. According to Mr. Prindle, the Golden Gate Yacht 
Club presently owes the City approximately $200,000 in 
back rent. 



To settle these claims, Mr. Ernie Prindle of the RPD 
advises that the proposed lease amendment would 
authorize a reduction in the rental rate from 10% to 7.5% 
of monthly gross revenue, but would also reduce the term 
of the lease by ten years, from 40 years to 30 years. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

SO 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



Comments: 



Recommendation: 



1. Attachment 2 is a memo provided by Mr. Prindle 
pertaining to the justification for reducing the proposed 
monthly rent payable to the City by 25% from 10% to 
7.5%. Notwithstanding this justification, Mr. Prindle has 
estimated a loss of $734,841 in rental revenues to the City 
due to this proposed rental rate reduction. 

2. As previously noted, the proposed legislation, in 
addition to reducing the rent payable to the City, would 
also reduce the terms of the lease by 10 years. However, 
m response to inquiries made by the Budget Analyst, Mr. 
Prindle could not state that a new lease would not be 
made with the Golden Gate Yacht Club at the end of the 
proposed reduced term of 30 years. 

3. An independent appraisal dated August 28, 1997 
was performed to determine the fair market rental rate. 
Comparables used were deli and port restaurants, with 
percentage rent ranging from 7% to 11%. As restaurants, 
these comparables do not address the other aspects of the 
Club beyond the Club's restaurant. The appraiser 
concluded that a market rental rate of 9% of gross 
receipts would be reasonable. Subsequent to the first 
appraisal, the Department of Real Estate requested 
another review of the matter, in response to which a 
supplemental addendum letter from the same appraiser 
dated November 25, 1997 was subsequently presented to 
the Recreation and Park Department, finding that the 
proposed rental rate of 7.5% would be reasonable, 
assuming a food and beverage operation that is subject to 
the Yacht Club's membership rules and regulations. 

4. Mr. Tony Delucchi, Director of Real Estate stated 
that the appraiser was retained by the Department of 
Real Estate on behalf of the Recreation and Park 
Department. However, Mr. Delucchi states that he was 
not involved in the appraisal which served as the basis for 
the proposed rental rate reduction. 

Disapprove the proposed resolution. The Budget Analyst 
has not been provided with sufficient factual information 
which would justify a 25 percent reduction in rent payable 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

81 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

by the Golden Gate Yacht Club to the City. As noted 
above, presently the Club is delinquent in the amount of 
$200,000 in its rental payments to the City. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

82 



Sheet9 



Attachment 1 



Year 


Annual 

Gross 

Revenue 


Rent at 10 
Percent 


Rent at 7.5 
Percent 


Difference 


1993-94 


S 840,691 


S 84,069 


S 63,052 


$ 


21,017 


1995 


S 598,744 


S 59,574 


$ 44.905 


$ 


14,959 


1996 


$ 623,851 


S 62,386 


$ 46,790 


$ 


15,597 


1997 


S 638,036 


S 63,804 


$ 47,853 


$ 


15,951 


1998 


$ 664,804 


S 66,480 


$ 49,860 


$ 


16,620 


1999-2022 


$26,027,507 


$2,602,751 


$1,952,063 


$ 


650,588 


Total 


529,393,643 


$2,939,364 


S 2.204,523 


$ 


734,841 



Notes/Assumptions 

"Gross revenue includes deduction for SBA loan payment. 

*1993 Gross Revenue is for period March through December. 

*1998 Gross Revenue includes 10 months actual and straight line projection for two months 

*1 999-2022 Gross Revenue assumes 4 percent increase per year based upon 1998 Gross Revenue 

as base. 2022 includes Gross Revenue only for 5 months. 



Page 1 



TOTAL P. 81 



83 



City and County of San Francisco 



Recreation and Park Department 

Attachment 




December 10, 1998 

TO: Budget AnaJyst f) 

FROM: Ernie Princ 

RE: Golden Gate Yacht Harbor 



W 



You have asked for a justification for the proposed reduction in rent for the Goiden 
Gate Yacht Club from 10 to 7.5 percent to of gross receipts. This reduction is based 
on an independent appraisal of the fair market rent for the property in question 
conducted through the Real Estate Department. To offset this reduction in rent for 
the first ten years of the lease, the Club has agreed that the rent would be adjusted 
to the fair market rent in the years 2002 and 2012. This modification will insure that 
the City receives a fair rent for the entire term of the lease. Moreover, the lease term 
would be reduced from 40 to 30 years, which is favorable to the City. 

Please let me know if you need any further information on this issue. 



McLaren Lodge, Golden Gate Park 

501 Stanyan Street 

San Francisco, CA 9411 7-1 8S8 



FAX: (415) &31 -2099 
Phone:(415)531-2700 



84 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

Items 17 and 18 - Files 98-1980 and 98-1981 

Department: Department of Human Services (DHS) 

Items: Supplemental Appropriation in the amount of 

$11,455,058 in State and Federal revenues to fund 
augmentation of various welfare programs and services, 
implementation of the new Statewide Welfare 
Information Network, and to provide the related 
necessary infrastructure and administrative capacity. 
Amendment to the Annual Salary Ordinance for the 
creation of 58.5 new positions at the Department of 
Humans Services. 

Amount: $11,455,058 

Source of Funds: A summary of the funding sources, which are detailed in 

the Ordinance File 98-1980, is as follows: 

New Federal Funds $4,657,250 

New State Funds 6.797.808 

Total $11,455,058 

Requested Supplemental Expenditure Appropriations by Program, 
for the period January 1, 1999 through June 30, 1999: 

Family and Children's Services $2,000,366 

Adult Services 469,016 

Food Stamps 47,954 

Refugee Employment Services 677,768 

Central Management (CalWIN) 6,095, 173 

Administration 2.164.781 

Total $11,455,058 

Description by Program: 

Program: Family and Children's Services 
Supplemental Cost $2,000,366 

Annualized Cost $3,910,398 

• Child Welfare Services Block Grant The State has provided funding for 

emergency caseload relief for child welfare workers. This funding cannot be used 
to supplant current local spending on child welfare services. DHS reports that 
caseload-based funding has not been evaluated in years, so the State has 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

85 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

provided such funds to reduce caseload ratios to a more manageable level while 
they develop new standards. Staff would be increased in the following Child 
Welfare Services Block Grant Programs: Long Term Placement Emergency 
Response/Court Dependency Units, Visitation, Special Projects, Child Welfare 
Services/Case Management System Super User. 

• Adoptions New State and Federal legislation requires DHS to place Foster 
Care children into permanent placement sooner. These legislative changes will 
significantly increase the number of adoptions that must occur in San Francisco, 
which currently has the State's lowest percentage (60%) of foster children placed 
in permanent homes. 

• Independent Living Skills Currently, the Independent Living Skills Program 
offers services to youth up to age 19 to help them prepare for independent living 
after they exit the foster care system. The State has allocated additional funding 
to extend services to former foster care youth up to the age of 21. 

• Foster Care Eligibility Due to changes in eligibility rules, the Foster Care 
caseload is expected to increase in 1999. DHS requests additional funding to add 
staff to reduce caseload. 

• Kinship Care This program, which provides services to caregivers who are 
relatives of foster children, would be expanded to serve more children and their 
caretakers, as well as additional support groups. 

• Asian/Pacific Islander Parental Stress Line This program provides hotline 
counseling, support, and referrals to families in crisis to Chinese, Vietnamese, 
Cambodian, Laotian, Samoan, and Filipino communities, as part of the Family 
Preservation and Support Plan. The current contract with Asian Perinatal 
Advocates ended October 31, 1998. DHS requests additional funding to extend 
the contract for the Parental Stress Line for the period November 1. 1998 
through June 30, 1999. 

• Child Abuse Prevention Currently, the Child Abuse Prevention Program 
provides child abuse reporting training to DHS staff, other professionals, and 
community members regarding child abuse issues, prevention, reporting 
requirements, and child protective services. DHS requests additional funding to 
extend the contract with the San Francisco Child Abuse Council to include 
outreach to schools. 

• Neighborhood System of Care Demonstration Currently, child welfare staff 
work in teams with staff from schools, community agencies, career centers, and 
family resource centers in the Southeast area of the City to support and preserve 
families. DHS requests additional funding to add one substance abuse counselor 
and one psychological consultant to the team. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

86 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

Family and Children's Services Expenditure Request 

Description Amount 

Personal Services 

Permanent Salaries SI. 007, 144 

Add 44.5 positions (20.63 FTE) 1,007,144 

Mandatory Fringe Benefits 252,793 

Mandatory Fringe Benefits 

(estimated at 25.1% of permanent salaries) 252, 793 

Non Personal Services 334.823 

Social Service Contracts 

Youth Ombudsman for Independent Living Skills 50,000 

Kinship Care Contract 47,500 

Services for Independent Living Skills 150,000 

Parental Stress Hotline 23,333 

Child Abuse Prevention 63,990 

Services of Other Departments 405.607 

Department of Public Health - Mental Health 
Neighborhood System of Care Demonstration Project 

Total Supplemental Request $2,000,366 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

87 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



Program: Adult Services 

Special Circumstances Program for Elderly and Disabled Adults 

Supplemental Cost $317,099 

Annualized Cost $282,725 

The State has recognized the need for increased services to elderly and disabled 
adults in San Francisco and has restored the Special Circumstances Program, 
which will fund one time purchases necessary for the health and well-being of 
elderly and disabled adults receiving Supplemental Security Income (SSI). 

Serving an Increased In Home Supportive Services Caseload 

Supplemental Cost $151,917 

Annualized Cost $327,686 

DHS reports that the State caseload standard for In Home Support Services (IHSS) 
is 155 cases per worker. In FY 1997-98, DHS workers carried an average of 248 
cases each, and the current caseload in FY 1998-99 is 261 cases each. The State 
allocated $151,917 to increase IHSS staff to reduce the caseload by 16. from 261 to 
245. 

Adult Services Expenditure Request 

Description Amount 

Personal Services 

Permanent Salaries $140,602 

Add 7 positions (3. 23 FTE) 1 40, 602 

Mandatory Fringe Benefits 35,291 

Mandatory Fringe Benefits 

(estimated at 25.1% of permanent salaries) 35,291 

Assistance 293.122 

Special Circumstances for Adults 

Total Supplemental Request $469,015 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

88 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



Program: Food Stamps 

Supplemental Cost $47,954 

Annualized Cost $103,439 

The State has restored benefits to immigrants between the ages of 18 and 64 who 
meet the new work requirements for this age group, as well as administrative costs 
to service this new group. 

Food Stamps Expenditure Request 

Description Amount 

Personal Services 

Permanent Salaries $38,333 

Add 2 positions (0. 93 FTE) 38, 333 

Mandatory Fringe Benefits 9.622 

Mandatory Fringe Benefits 

(estimated at 25.1% of permanent salaries) 9,622 

Total Supplemental Request $47,954 



Program: Employment Services for Refugees 

Supplemental Cost $677,768 

Annualized Cost $221,857 

The State has allocated additional funds to San Francisco to provide employment 
services for refugees through the Private Industry Council. The State requires these 
funds pass through DHS. This supplemental appropriation of $677,768 includes 
$455,911 of rollover funds from FY 1997-98. 

Employment Services for Refusees Expenditure Request 

Description Amount 

Non Personal Services $677,768 

Social Services Contracts 

Private Industry Council $677,768 

Total Supplemental Request $677,768 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

89 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



Program: Central Management - California Welfare Information Network 
(CalWIN) 

Supplemental Cost $6,095,173 

Annualized Cost $6,192,174 

The State is beginning to implement the new, PC-based computer network to store 
welfare information. They have fully funded three positions to implement the 
system as well as the cost of developing the system. 

CalWIN Expenditure Request 

Description Amount 

Personal Services 

Permanent Salaries $29,115 

Add 3 positions (0. 63 FTE) 29,115 

Mandatory Fringe Benefits 7.308 

Mandatory Fringe Benefits 

(estimated at 25.1°'o of permanent salaries) 7,308 

Non Personal Services 6,016,250 

Travel 11.250 

Training 5,000 

Professional Services Contracts 

Cal WIN Contract 6, 000, 000 

Capital Equipment 42.500 

Computer Equipment 

6 computers at an average of $4,583 each 27,500 

Furniture and other equipment for 5 staff at 3,000 each 15,000 

Total Supplemental Request $6,095,173 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

90 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



Program: Administrative/Support Staff and Operating Costs 

Supplemental Cost $2,164,781 

Annualized Cost $1,043,254 

The changes described above will require additional administrative and support 
staff and operating expenses, including: (1) cars to equip new child welfare staff for 
their fieldwork, and (2) rent, furniture, equipment, and wiring to prepare a new site 
and renovate current sites to. accommodate the staff expansion. DHS also plans to 
workorder to the Mayor's Office of Children, Youth and Families to contract for 
childcare, latch-key, and family-related services in the Tenderloin neighborhood. 

Administrative and Overhead Expenditure Request 

Description Amount 

Personal Services 

Permanent Salaries $0 

Add 2 positions (0. 93 FTE) 3 7, 788 

Increase Salary Savings (-0. 93FTE) (S3 7, 788) 

Mandatory Fringe Benefits 

Mandatory Fringe Benefits 

(estimated at 25.1% of permanent salaries) 9,622 

Increase Salary Savings (9, 622) 

Non Personal Services 196,342 

Professional Services Contracts 

Brochures 15,000 

Other Current Expenses 

Lease of Space for Family and Children's Services 96,000 

See Comment No. 7 
Tenant Improvements 80, 776 

Photocopy Leases 4, 566 

Materials and Supplies 169,500 

Materials and Supplies 

Furniture and office equipment for new staff 
See Comment No. 8 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

91 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

Capital Outlay 397.900 

Equipment Purchase 

Computers for new staff 144,000 

31 computers at $4,500 each and wiring at $3, 750 

See Comment No. 9 
Computer for Human Resource Information Service 45,000 

10 computers at $4,500 each 
Computer for In Home Support Services Screening 27,000 

6 computers at $4, 500 each 
In Home Support Services Phone Tracking System 20,000 

County Adult Assistance Program Metal Detectors 10,000 

2 metal detectors at $5,000 each 
Automobiles for Family and Children's Services staff 151.900 

10 automobiles at $15,190 each 

Services of Other Departments 1,401,039 

Mayor's Office of Children, Youth and Families 
Childcare, Latch-key, and Family Services 
See Comment No. 10 for details 

Total Supplemental Request S2.164.781 



Comments: 1. Attachment 1 to this report details the proposed 

creation of 58.5 positions, by specific program as 
requested under this subject legislation, representing 
25.42 FTEs and $1,215,193 in salary expenditures for FY 
1998-99. 

2. No General Fund monies would be used for this 
supplemental appropriation in the amount of SI 1.455,058 
since all proposed expenditures are supported by new 
State and Federal Revenues. Attachment 2, provided by 
Mr. Daniel Kim of DHS, explains that the proposed staff 
additions and program expansions would result in a 
General Fund savings of S236.984 in FY* 1998-99. 

3. Based on DHS projections, the full year annual total 
expenditures in FY 1999-00 resulting from the new 
positions and programs included in this supplemental 
appropriation would amount to approximately 
$12,081,534 to be offset by new State and Federal 
revenues of approximately S12,405,049, therefore 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

92 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

resulting in decreased General Fund requirements of 
$323,515, beginning in FY 1999-00. 

4. The annual cost of the requested 58.5 new positions 
would range from $3,337,106 at Step 1. including salaries 
of $2,667,551 and fringe benefits of $669,555. to 
$3,999,204 at Step 5. including salaries of $3,196,806 and 
fringe benefits of $802,398. 

5. Of the 58.5 proposed new positions, 10 would be hired 
at Step 5. Mr. Kim reports that hiring at Step 5 is 
necessary because these 10 positions are Supervisory or 
Section Manager positions and the candidates will be 
promoted from within and would qualify for the highest 
step. 

6. Of the 58.5 requested new positions, 53.5 positions 
assume a start date of January 11, 1998. Mr. Kim reports 
that the Department of Human Resources has prepared 
lists of eligible candidates for all the classifications, 
however the Budget Analyst finds DHS' assumption of a 
January 11, 1999 hiring date for 53.5 positions to be 
unrealistic. As such, the Budget Analyst recommends 
that funding be reduced to allow 28 of the new 53.5 
positions to be hired with a start date of February 10. 
1998 as follows: 

Family and Children's Services 

Permanent Salaries reduced by $92,081, from $1,007,144 to $915,063 

Fringe Benefits reduced by $23,112, from $252,793 to $229,681 

Adult Services 

Permanent Salaries reduced by $14,213, from $140,602 to $126,389 

Fringe Benefits reduced by $3,567, from $35,291 to $31,724 

Food Stamps 

Permanent Salaries reduced by $3,327, from $38,333 to $35,006 

Fringe Benefits reduced by $835, from $9,622 to $8,787 

In total, Permanent Salaries should be reduced by 
$109,621 from $1,215,193 to $1,105,572 and Fringe 
Benefits should be reduced by $27,514 from $305,103 to 
$277,589. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

93 



Memo to Finance Committee 

December 9. 1998 Finance Committee Meeting 



7. DHS has requested $96,000 the fund a new lease of 
space to accommodate additional staff and expanded 
services in the Family and Children's Services Program. 
The proposed lease would be for 10,000 square feet 
adjacent to existing DHS space in the Bayview Plaza, at a 
rate of $1.60 per square foot for the six month period of 
January 1, 1999 through June 30. 1999. According to Mr. 
Christian Griffith of DHS, the proposed lease would be 
occupied by 40 new and existing employees, at 250 square 
feet per employee. Mr. Griffith notes that the proposed 
lease includes several common areas such as waiting and 
meeting rooms. 

8. In the Administrative Support Program, DHS has 
requested Materials and Supplies in the amount of 
$169,500 to fund furniture and office equipment for the 
58.5 new positions at a cost of $3,000 each. However, 
under the CalWIN Program budget, DHS also requested 
furniture and office equipment for five positions, three of 
which are new positions. As such, DHS has duplicated the 
furniture request for three of the 58.5 positions. 
Therefore, in the Administrative Support Program, the 
Materials and Supplies budget should be reduced by 
$9,000 (3 positions at $3,000 each), from $169,500 to 
$160,500. 

9. DHS has requested $397,900 for Capital Equipment in 
the Administrative Support Program which includes 
$144,000 for computers to serve new staff in the Family 
and Children's Services Program. DHS provided 
justification of 31 computers at $4,500 each and computer 
wiring for a new site at $3,750, for a total of $143,250. As 
such, the Capital Equipment budget should be reduced by 
$750. 

10. Attachment 3, provided by DHS, provides an 
explanation for the workorder to the Mayor's Office of 
Children, Youth and Families (MOCYF) in the amount of 
$1,401,039. MOCYF has selected Glide Memorial Church 
as a contractor to provide $401,039 in Childcare, Latch- 
key and Family Services in the Tenderloin, for the period 
March 1, 1999 through June 30. 1999. As also shown in 
the budget in Attachment 3, MOCYF would allocate 
$1,000,000 to capital expenses to partially fund the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

94 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

construction of a Family Support Center, sited adjacent to 
Glide. 

Recommendations: 1. In accordance with Comment No. 6, amend the 

ordinance (File 98-198.0) to reduce the request for 
Permanent Salaries by $109,621, from 51,215,193 to 
$1,105,572 and Fringe Benefits by $27,514 from $305,103 
to $277,589. 

2. In accordance with Comment No. 8, reduce the request 
for Materials and Supplies in the Administrative Support 
Program by $9,000, from $169,500 to $160,500. 

3. In accordance with Comment No. 9, amend the 
ordinance (File 98-1980) to reduce the request for Capital 
Equipment in Administrative Support Program by $750, 
from $397,900 to $397,150. 

4. Approve the proposed ordinance as amended (File 98- 
1980) and approve the proposed amendment to the 
Annual Salary Ordinance (File 98-1981). 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

95 



Attachment 1 
Page 1 of 2 



Positions Treated bv Program 
Family and Children's Services 





No. of 




Biweekly 




Step 1 
(Biweekly 


Step 5 
(Biweeklv 


Classification and Title 


Positions 


FTEs 


Rate 


Amount 


Annual) 


Annual) 


1426 Senior Clerk Typist 


3 


1.39 


S1.270 


S46.101 


S1.270 
33,147 


SI. 539 
40.168 


1444 Secretary I 


2 


0.93 


1.211 


29.306 


1.211 
31,607 


1,467 
38.289 


2904 Human Service Technician 


4 


1.85 


1,346 


65.146 


1.346 
35,131 


1.630 

42.54? 


2905 Senior Eligibility Worker 


1.5 


0.7 


1.584 




1.584 
41,342 


1.923 
50.190 


2912 Senior Social Worker 


4 


1.85 


1.634 


79.086 


1,634 
42,647 


1.985 
51.809 


2914 Social Work Supervisor 


2 


0.93 


2.230 


53.966 


1,835 
47,894 


2.230 
58.203 


2917 Proram Support Analyst 


1 


0.46 


2.621 


31,714 


2.156 
56.272 


2.621 
68.408 


2940 Child Welfare Worker 


22 


10.2 


1.918 


510,572 


1,918 
50,060 


2.332 
60.865 


2944 Child Welfare Supervisor 


4 


1.85 


2.621 


126,856 


2,156 

56.272 


2.621 
68.408 


2948 Section Manager DHS 


1 


0.46 


2946 


tv647 


2,424 
63.266 


2.946 
76.891 


Total 


44.5 


20.6? 


SI 9.381 


Sl.00-.144 







Adult Services 

















Step 1 


Step 5 




No. 


of 






Biweeklv 




(Biweekly 


(Biweekly 


Classification and Title 


Posit 


ons 


FTEs 


Rate 


Amount 


Annual) 


Annual) 


1426 Senior Clerk Typist 






1 


046 


S1.2 _ 


$15,367 


SI. 270 
33,147 


SI. 5 39 
40,168 


2905 Senior Eligibility Worker 






1 


0.46 


1.5S4 


19.166 


1.584 
41.342 


1.923 
50.190 


2912 Senior Social Worker 






4 


1.85 


1.634 


79.086 


1 .634 
42,647 


1.985 
51,809 


2914 Social Work Supervisor 






1 

7 


046 

3 J3 


S6.71S 


26.98? 

S140.602 


1.835 
47,894 


2.230 
58.203 



96 



Attachment 1 
Pase 2 of 2 



Food Stamps 



Classification and Title 


No. of 
Positions 


FTEs 


Biweekly 
Rate 


Amount 


Step 1 
(Biweekly 
Annual) 


Step 5 
(Biweekly 
.Annual) 


2905 Senior Eligibility Worker 


i 


0.93 


$1,584 


S38.333 


$1,584 

41.342 


$1,923 

50.190 



CalWIN 















Step 1 


Step 5 




No 


of 




Biweekly 




(Biweekly 


(Biweekly 


Classification and Title 


Positions 


FTEs 


Rate 


Amount 


Annual) 


Annual) 


1052 IS Business Analyst 




1 


0.16 


$1,876 


$7,692 


$1,876 
48,964 


$2,281 
59,534 


2913 Program Specialist 




1 


0.31 


1,756 


14.224 


1,756 
45,832 


2,135 
55.724 


2913 Program Specialist 




1 


0.16 


1 7S6 


7.200 


1,756 
45,832 


2.135 
55,724 






3 


0.63 


$5,388 


$29,116 







Administration 

















Step 1 


Step 5 






No 


of 




Biweekly 




(Biweekly 


(Biweekly 


Classification 


and Title 


Positions 


FTEs 


Rate 


Amount 


Annual) 


Annual) 


1220 Payroll Clerk 






1 


0.46 


$1,425 


$17,243 


$1,425 
37.193 


$1,727 
45.075 


1446 Secretary II 






1 


0.46 


1.698 


20,545 


1,401 
36,566 


1.698 
44,3 IS 


Salary Savings 






-2 




-092 



$3,123 


H7.78R) 








Total New Postions: 
Total FTE FY 1998-99: 
Total Amount FY 1998-99: 



58.5 

25.42 

Sl.215.193 



97 



Attachment 2 



Department of 
Human Services 



Memo 



To: Taylor Emerson (Fax 252-0451 /Phone 554-7642) 

From: Daniel Kim (Fax 431-9270/Phone 557-5661) 

Date; 12/03/98 

Re: Responses to Supplemental Questions #6 



This memo responds to your follow-up question from yesterday. You asked me: 



What, if any, GF savings will you generate through your Supplemental Request? 

For the Supplemental, we are generating $1 1,695,399 in additional State and FederaJ revenue. Of this amount, wb propose to 
spend $11,458,415 million in FY98-99. Consequently, our Supplemental request will generate a net General Fund savings of 
$236,984 in FY98-99. 

In out years, we also anticipate General Fund savings as a result of our Supplemental request Specifically, we project that our 
Supplemental request will generate $12,405,049 in additional State and Federal revenues on an annual basis. Of this amount, 
we project we will spend $12,081,534 on an annual basis. Consequently, we project our Supplemental request will generate a 
net General Fund savings of $323,51 5 million on an annual basis. 



TOTAL P. 01 



98 



D=f\ Or HUT-PIN SUCS 415 431 S270 P.e2/05 



Attachment 3 
Page 1 of 2 



MEMORANDUM 

December 3, 1998 

TO: Taylor Emerson, Budget Analyst 

FROM: Daniel Kim, DHS Budget & Fiscal Operations Manager 

RE: Supplemental Appropriation Request to Improve Childcare, Latch-key, and 

Family-related Services in the Tenderloin 

This memo provides additional information regarding the supplemental appropriation request to 
Improve Childcare, Latch-key, and Family-related Services in the Tenderloin neighborhood. 

Our Supplemental request includes a $1.4 million workorder to the Mayor's Office of Children, 
Youth and Families. These monies will then be contracted for the purposes of providing childcare, 
latch-key, and family-related services in the Tenderloin neighborhood. Below, we summarize the 
major components of the request. 

Target Clients 

The center will provide three different levels of service to families: (1) core group or full services, 
(2) modified service, and (3) single service. The core group of about 25 TANF families (est 27 
adults and 95 children) will receive a full menu of services. About 40 families (42 adults and 95 
children) will receive modified services, which will include some but not all of the center's services. 
The single service will provide about 200 single parents with various parenting and career 
services. 

Services 

The center will provide services to three different types of clients: (1) licensed child care for 
toddlers and preschool children, (2) latch-key services for school aged children and youth, and (3) 
family-related services. 

• Licensed childcare. The contractor will provide childcare for an estimated 44 slots for 
children age 18 months to 5 years. These children will participate in a developmental^ 
appropriate preschool curriculum. 

• Latch-key services. Children and youth age six to seventeen will receive an intensive, 
comprehensive range of services, including a life skills curriculum that is developmental^ 
appropriate for each age group. 

• Family-related services. Participating adults will receive training on parenting, life skills, and 
career services. 

Expenditures 

This supplemental request includes $1.0 million to partially cover the cost of one-time capital 
outlays for the contractor's center. This request also includes operating costs of $401,039 for this 
fiscal year. This money will partially cover the cost of staff who will provide the childcare, latch-key, 
and family-related services. 



99 



DEC-03-1998 16=38 



DEPT OF HUMAN SUCS 



Attachment 3 
Page 2 of 2 



Memo 



Department of 
Human Services 



To: Taylor Emerson (Fax 252-0461 /Phone 554-7642) 

From Daniel Kim (Fax 431-9270/Phone 557-5681) 

Date: 12/03/98 

Re: Response to Supplemental Questions #8 



For the MOCYF wortcorder, the funding we propose to provide through the MOCYF workorder would breakout as follows 



Program Component F Y98-99 


Capital Outlay* 


51,000,000 


ChUdcare Services 


$28,814 (Mar 1 - June 30) 


Family-related Services 


$135221 (Marl- June 30) 


Youth Services 


$107,906 (Marl - June 30) 


Phase-in Costs* 


$129,098(Jan1-Feb28) 


Total 


$1,401,039 



•Capital Outlay and Phase-in (i.e. start-up) costs are one-time only. 



If you have any further questions, please don't hesitate to call me at 557-5661 . 



100 



Memo to Finance Committee 

December 9. 1998 Finance Committee Meeting 

Item 19 - File 98-1974 

Item: Ordinance authorizing the participation in the 

proposed multi-state settlement of tobacco litigation. 

Description: According to the proposed ordinance, the City and 

County of San Francisco brought a lawsuit entitled 
People v. Philip Morris, et. al . in September of 1996. 
alleging unfair and unlawful business practices by 
the tobacco industry. San Francisco's lawsuit was 
subsequently coordinated with four other tobacco 
lawsuits, including the California Attorney General's 
lawsuit against the tobacco industry. In August of 
1998, the California Attorney General entered into a 
Memorandum of Understanding (MOU) with 
California cities and counties to distribute one-half of 
any settlement from these lawsuits to these 
California cities and counties. 

A tentative settlement agreement was reached on 
November 23, 1998 between the State Attorney 
General and the four major tobacco manufacturers, 
including Philip Morris, Inc. R.J. Reynolds Tobacco 
Company, Brown & Williamson Tobacco Corporation 
and Lorillard Tobacco Company to (1) prohibit the 
use of cartoons in advertising, promoting, packaging 
or labeling tobacco products; (2) prohibit the 
distribution of free sampies of cigarettes except in 
certain circumstances; (3) dissolve the tobacco 
Institute and the Center for Indoor Air Research (4) 
prohibit the industry's entering into agreements to 
inhibit anti-tobacco advertising (5) prohibit the 
industry's licensing of brand names to third-parties 
to be used in a manner forbidden to the industry; (6) 
prohibit the industry's product placements in motion 
pictures, television shows, theatrical productions or 
other live or recorded performances of music, 
commercial films or videos, or video games; and (7) 
pay approximately $25 billion to the State of 
California over the next 25 years. Under the MOU, 
the City and County of San Francisco would receive 
approximately $586 million over 25 years, subject to 
certain adjustments. The proposed ordinance would 
authorize the City's participation in this proposed 
multi-state settlement of tobacco litigation. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

101 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 



Comments: 



Recommendation: 



1. Mr. Pat Mahoney of the City Attorney's Office 
reports that the City and County of San Francisco 
expended $1,355,776 for City Attorney costs 
(approximately 9,039 hours at an average rate of 
$150 per hour), plus $18,795 on outside experts, for a 
total cost of $1,374,571 on this case against the 
tobacco industry. 

2. According to Mr. Mahoney, the proposed ordinance 
will be discussed in closed session with the members 
of the Finance Committee. Therefore, Mr. Mahoney 
advises that any additional details and further 
questions should be discussed in closed session. 

3. The proposed ordinance would authorize the City 
Attorney's Office to settle its lawsuits with the 
tobacco industry, in return for public health benefits 
and payment of $586 million to the City and County 
of San Francisco over 25 years. The Budget Analyst 
notes that the proposed ordinance does not address 
the expenditure of such funds. Authorization for 
expenditure of such funds would be subject to 
separate budgetary appropriation approval by the 
Mayor and the Board of Supervisors. 

Approval of the proposed ordinance is a policy matter 
for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

102 



Memo to Finance Committee 

December 9. 1998 Finance Committee Meeting 

Item 20 - File 98-1975 



Item: 



Description: 



Ordinance authorizing the participation in the 
settlement of litigation concerning the State of 
California against the Bank of America. 

According to the proposed ordinance, the City and 
County of San Francisco brought a lawsuit against 
the Bank of America in May of 1997, entitled State 
of California ex rel. 1 Stull v. Bank of America , 
alleging false claims, unfair and unlawful business 
practices, breach of contract and negligence on the 
part of the Bank of America. In November of 1998, 
the California Attorney General's Office entered 
into an agreement with San Francisco, and with 
other cities, counties and special districts that 
issued municipal bonds, to distribute 
approximately 40 percent of any settlement of the 
case to such cities, counties and special districts. 
In addition to this provision, under that agreement, 
San Francisco was to receive a premium of between 
S7.5 million and $10 million. 



On November 10, 1998, the State of California and 
the City and County of San Francisco negotiated a 
settlement with the Bank of America, in which the 
Bank will pay to the State and to all of the 
applicable other cities, counties and special 
districts (defined as even- issuer of municipal debt 
in California, subject to limitations in the 
settlement), a total of $187.5 million, plus interest 
at the rate of five percent beginning November 20, 
1998, in addition to $10.6 million previously paid 
by the Bank of America to the State and to all of 
the applicable other cities, counties and special 
districts. According to the proposed ordinance, San 
Francisco is expected to receive in excess of $15 
million, representing its costs and attorney's fees 
estimated at $4 million, the premium for its work 
in the litigation estimated in the range of $7.5 to 
$10 million and its pro rata share of the funds 



1 Ex Relatione (ex rel.) are legal proceedings instituted by the Attorney General on behalf of 
the State, but on information and at the instigation of another who has a private interest in 
the matter. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

103 



Memo to Finance Committee 

December 9, 1998 Finance Committee Meeting 

recoverable by issuers of municipal bonds, 
estimated at a minimum of S3 million. 

Comments: 1. Mr. Pat Mahoney of the City Attorney's Office 

reports that the City and County of San Francisco 
expended $2,744,789 for City Attorney costs 
(approximately 17.155 hours at an average rate of 
$160 per hour), plus $1,953,199 for outside experts, 
for a total cost of $4,697,988 on this Bank of 
America lawsuit. 

2. According to Mr. Mahoney, the proposed 
ordinance will be discussed in closed session with 
the members of the Finance Committee. Mr. 
Mahoney reports that any additional details, 
including the payment of the proposed settlement 
and any further questions should be discussed in 
closed session. 

3. The proposed ordinance would authorize the City 
Attorney's Office to settle its lawsuit with the Bank 
of America, in return for the payment of 
approximately $15 million. The Budget Analyst 
notes that the proposed ordinance does not address 
the expenditure of such funds. Authorization for 
expenditure of such funds would be subject to 
separate budgetary appropriation approval by the 
Mayor and the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

104 



Memo to Finance Committee 

December 9. 1998 Finance Committee Meeting 

Recommendation: Approval of the proposed ordinance is a policy 

matter for the Board of Supervisors. 

Harvey M. Rose 




cc: Supervisor Teng 
President Kaufman 
Supervisor Newsom 
Supervisor Ammiano 
Supervisor Bierman 
Supervisor Brown 
Supervisor Katz 
Supervisor Leno 
Supervisor Medina 
Supervisor Yaki 
Supervisor Yee 
Clerk of the Board 
Controller 
Gail Feldman 
Matthew Hymel 
Stephen Kawa 
Ted Lakev 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



^5 



f n 




City and County of San Francisco 

Meeting Agenda 

Finance Committee 

Members: Supervisors Mabel Teng, Barbara Kaufman, Gavin Newsom 
Clerk: Joni Blanchard 



Veterans Building / S r 
401 Van Ness Avenue. 
Room 308 
San Francisco, CA 

W10M532 DEpT 





Wednesday, December 16, 1998 



1:00 PM 



Regular Meeting 



Veterans Building 

401 Van Ness Ave., Room 410 

San Francisco, CA 94102 



CONSENT AGENDA 



All matters listed hereunder constitute a Consent Agenda, are considered to be routine and will be 
acted upon by a single roil call vote of the Committee. There will be no separate discussion of these 
items unless a member of the Committee so requests, in which event the matter shall be removed from 
the Consent Agenda and considered as a separate item. 



981998 [Reserved Funds, Mayor's Office of Housing] 

Hearing to consider release of reserved funds, Mayor's Office of Housing (1988 Community 
Development Block Grant Program, Resolution 121-98), in the amount of 5381,491 from Housing 
Program Pools, and S53.767 from Housing Program Administration, to provide the necessary 
financing for the 1601 Howard Street project. (Mayor) 

1 1/24/98, RECEIVED AND ASSIGNED to Finance Committee. 



982021 [Reserved Funds, Mayor's Office of Community Development) 

Hearing to consider release of reserved funds, Mayor's Office of Community Development, (1998 
Emergency Shelter Grants, Resolution No. 122-98) m the amount of 5200,000 to fund the 
Community Awareness and Treatment Services (CATS) Project. (Mayor) 

12/1/98, RECEIVED AND ASSIGNED to Finance Committee. 



982035 [Reserved Funds, City Administrator) 

Hearing to consider release of resered funds. City Administrator, (Convention Facilities Fund. 
Ordinance No. 97-95), in the amount of 51,093,000 to reimburse Redevelopment Agency for 
performing capital improvements at the Children's Place and Moscone Center. (Administrative 
Services Department) 

12/1/98, RECEIVED AND ASSIGNED to Finance Committee. 



City and County of San Francisco 



Prinird as 10:04 AM on IIJ0*S 



Finance Committee 



Meeting Agenda 



Hrdnciday, December 16, I99S 



REGULAR AGENDA 



981961 [Salary Ordinance Amendment, County Agriculture/Weights and 
Measures] 

Ordinance amending Ordinance No. 243-98 (Annual Salary Ordinance, 1998-1999), County 
Agriculture/Weights and Measures, reflecting the creation of 2 5 positions (Class 6220 Inspector of 
Weights and Measures and Class 1424 Clerk Typist). (Department of Human Resources) 

1 1/1 8/98, RECEIVED AND ASSIGNED to Finance Committee 



982003 [Reserved Funds, Department of Public Healtb| 

Hearing to consider release of reserved funds. Department of Public Health-Community Health 
Service, (Ordinance No. 308-98, Mangini settlement revenue), in the amount of SI 00,000 to fund 
work order services from Agriculture/Weights and Measures for enforcement services. (Department 
of Public Health) 

1 1/23/98, RECEIVED AND ASSIGNED to Finance Committee 



981927 |lnion Square Business Improvement District Advisory Board| Supervisor Kaufman 

Resolution establishing an Advisory Board to make recommendations to the Board of Supervisors on 
the expenditure of revenues derived from assessments, on the classification of properties within, and 
on the method and basis for levying assessments upon, property located within the Union Square 
Business Improvement District. 

1 1/16/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 12/16/1998. 

981936 [Penalties, Late Payment of Parking Tickets) Supervisor Teng 

Ordinance amending Traffic Code by adding Section 131 to Article 7. adopting a penalty schedule 
for the late payment of parking tickets and providing that the Board of Supervisors may by resoluDon 
declare periods of amnesty during which late payment penalties would be forgiven upon prompt 
payment of the underlying fine. 

(Adds Section 131.) 

1 1/16798, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 12/1671998. 



982026 [PIT Commercial Paper Issuance] 

Resolution approving the issuance of up to S225, 000,000 aggregate principal amount outstanding at 
any one time of San Francisco Public Utilities Commission Commercial Paper Notes (Water Series ) 
pursuant to Chapter 84 of Part 1 of the San Francisco Municipal Cede in one or more series for the 
purpose of financing and refinancing certain capital improvements related to the Water Enterprise: 
approving the maximum interest rate thereon; and related matters. (Public Utilities Commission) 

12/2/98, RECEIVED AND ASSIGNED to Finance Committee 



City and County of San Francisco 



Printed at 10:04 AM on 12/lV*t 



Finance Committee 



Meeting Agenda 



Wednesday, December 16, 1998 



9. 982010 [Appropriation, Dept of Public Transportation] 

Ordinance appropriating $16,105,000, Department of Public Transportation, of the General Fund 
Reserve to fund the cost of the MUNI Metro recovery contract, implement various improvements 
throughout the MUNI system, address the deficit in fare revenue and supplement the increased cost 
of the use of MUNI Fast Passes on BART, and providing for the creation of 18 positions and the 
deletion of 14 positions for fiscal year 1988-1999; companion measure to File 98201 1. (Public 
Transportation Commission) 

1 1/25/98, RECEIVED AND ASSIGNED to Finance Committee. 
12/7/98, SUBSTITUTED. Submitted by the Mayor. 
12/7/98, ASSIGNED to Finance Committee. 

10. 982011 [Public Employment] 

Ordinance amending Ordinance No. 243-98 (Annual Salary Ordinance, 1998-1999), Department of 
Transportation, reflecting the creation of 18 positions and the deletion of 14 positions; companion 
measure to File 982010. (Department of Human Resources) 

1 1/25/98, RECEIVED AND ASSIGNED to Finance Committee. 
12/7/98, SUBSTITUTED. Substituted by Mayor. 
12/7/98, ASSIGNED to Finance Committee. 

11. 982047 [ Pedestal-Mounted Newsrack Agreement] Supervisor Kaufman 

Ordinance approving the pedestal-mounted newsrack agreement by and between the City and County 
of San Francisco and Adshel Inc. which allows for the provision, installation and maintenance of 
pedestal mounted newsracks on public property; approving an indemnification of the contractor by 
the City for all claims initiated by a publisher hording a permit for a newsrack box or other publisher 
concerning the newsracks, their operation or the agreement with Adshel, Inc., and authorizing the 
Director of the Department of Public Works to make changes to the Department of Public Works 
Director's orders incorporated by reference in the agreement with Adshel, Inc. 

12/7/98, RECEIVED AND ASSIGNED to Finance Committee. 

12. 982063 [Tax Collector's Office Management Audit] Supervisor Kaufman 

Hearing to consider the follow-up review of the 1995 Management Audit of the Tax Collectors' 
Office. 

12/7/98, RECEIVED AND ASSIGNED to Finance Committee. 

13. 981719 [Audit of Transient Occupancy Tax Payments) Supervisor Newsom 

Resolution urging the Tax Collector to conduct an audit of transient occupancy tax payments from 
certain single room occupancy hotels. 

10/13/98, RECEIVED AND ASSIGNED to Finance Committee. 



City and County of San Francisco 



Printed at I0.0S AM on 12,'IO.VS 



Finance Committee Meeting Agenda Wednesday, December 16. 1998 



LITIGATION 

This Committee of the Board of Supervisors may meet in closed session under the provisions of 
Government Code Section 54956 9(a) to discuss proposed settlements of the lawsuits listed below, 
these lawsuits involving the City and County of San Francisco. This motion would be made on the 
basis that discussion in open session of these proposed settlements would prejudice the position of 
the City in these lawsuits. 

14. 981923 [Golden Gate Yacht Club Lease Amendment! 

Ordinance approving the First Amendment to the lease between the City and the Golden Gate Yacht 
Club to reduce the rental rate from 10 percent to 7.5 percent of the Club's monthly gross revenue and 
reducing the lease term from 40 to 30 years. (City Attorney) 

1 1/13/98, RECEIVED AND ASSIGNED to Finance Committee 

12/9/98, CONTINUED Heard in Committee Connnued to December 16, 1998 meeting (as a closed session 
item) Speakers: Harvey Rose, Budget Analyst; Joel Robinson, Acting Director, Recreation and Park 
Department - support 



77iiy Committee of the Board of Supervisors may find that it is in the best interests of the City not to 
disclose any information revealed in its closed session deliberations in the above items at this time 
and may move not to disclose any information at this time 



IMPORTANT INFORMATION 

NOTE: Persons unable to attend the meeting may submit to the City, by the time the proceeding 
begins, written comments regarding the agenda items above These comments will be made a part of 
the official public record and shall be brought to the attention of the Board of Superiors. Any 
written comments should be sent to Committee Clerk. Finance Committee. San Francisco Board of 
Supervisors. 401 Van Ness Avenue. Room 308. San Francisco. California 94102 by 5 00 p.m on the 
day prior to the hearing Comments which cannot be delivered to the committee clerk bv that time 
may be taken directly to the hearing at the location above. 



ADJOURNMENT 



City and County of Sam Francisco Printed at 10:05 AM on Ihld^i 



Finance Committee 



fleeting Agenda 



Wednesday, December 16. 1998 



LEGISLATION UNDER THE 30-DAY RULE 

Rule 5.40 provides that when an ordinance or resolution is introduced which would CREA TE OR 
REVISE MAJOR CITY POLICY, the committee to which the legislation is assigned shall not consider 
the legislation until at least thirty days after the date of introduction. The provisions of this rule shall 
not apply to the routine operations of the departments of the City or when a legal time limit controls 
the hearing timing. In general, the rule shall not apply to hearings to consider subject matter when 
no legislation has been presented, nor shall the rule apply to resolutions which simply URGE action 
to be taken. 



15. 981936 [Penalties, Late Payment of Parking i ickets] Supervisor Teng 

Ordinance amending Traffic Code by adding Section 131 to Article 7, adopting a penalty schedule 
for the late payment of parking tickets and providing that the Board of Supervisors may by resolution 
declare periods of amnesty during which late payment penalties would be forgiven upon prompt 
payment of the underlying fine. 

(Adds Section 131.) 

1 1/16/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 12/16/1998. 

16. 981927 [Union Square Business Improvement District Advisory Board] Supervisor Kaufman 

Resolution establishing an Advisory Board to make recommendations to the Board of Supervisors on 
the expenditure of revenues derived from assessments, on the classification of properties within, and 
on the method and basis for levying assessments upon, property located within the Union Square 
Business Improvement District. 

1 1/16/98, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 12/16/1998. 



Watch future agendas for matters. 



City and County of San Francisco 



Printed at I0:0< AM on 11 10VS 



Finance Committee 



Meeting Agenda 



Hedneiday. December 16, I99S 



Disability Access 



Both the Committee Room (Room 410) and the Chamber (Room 404) are wheelchair accessible The closest 

accessible BART Station is Civic Center, four blocks from the Veterans Building. Accessible MUM lines serving this 

location are: #42 Downtown Loop, the #71 Haight/Nonega, the F line to Market and Van Ness and the METRO 

stations at Van Ness and Market and at Civic Center. For more information about MUNI accessible services, call 923- 

6142. 

There is accessible parking in the vicinity of the Veterans Building adjacent to Davies Hall and the War Memorial 

Complex. 

Assitive listening devices are available for use m the Meeting Room and the Board Chamber A device can be 
borrowed prior to or during a meeting. Borrower identification is required and must be held by Room 308 staff 

The following services are available on request 48 hours prior to the meeting or hearing: 

For American sign language interpreters or the use of a reader during a meeting, contact Violeta Mosuela at 
(415)554-7704. 

For a large print copy of an agenda, contact Moe Vazquez at (415) 554-4909 

In order to assist the City's efforts to accommodate persons with severe allergies, environmental illness, multiple 
chemical sensitivity or related disabilities, attendees at public meetings are reminded that other attendees may be 
sensitive to various chemical based products. Please help the City to accommodate these individuals 

Government's duty is to serve the public, reaching its decisions in full view of the public. Commissions, boards, 
councils and other agencies of the City and County exist to conduct the people's business The Sunshine Ordinance 
assures that deliberations are conducted before the people and that City operations are open to the people's review For 
more information on your rights under the Sunshine Ordinance (Chapter 67 of the San Francisco Administrative Code) 
or to report a violation of the ordinance, contact the Sunshine Ordinance Task Force at 554-485 1 . 



FINANCE COMMITTEE 

S.F. BOARD OF SUPERVISORS 

VETERANS BUILDING 

401 VAN NESS AVENUE, ROOM 308 

SAN FRANCISCO, CA 94102 

IMPORTANT HEARING NOTICE!!! 



~5 

.3 Z 



Bill I v rich 

Govt Information Ctr 

41 Library 

100 Larkin Street 



f 
10.25 

1 



CITY AND COUNTY 




Public Library,Gov't Info. Ctr., 5 th Fir 
Attn: Susan Horn 



OF^AN FRANCISCO 



.BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



December 11, 1998 
TO: ^Finance Committee 

FROM: Budget Analyst ft*«~«»»*i**i«« -fty .»<^,.^ c-f. 

SUBJECT: pecember 16, 1998 Finance Committee Meeting 



Item 1- File 98-1998 

Department: 

Item: 



Amount: 
Source of Funds: 



DOCUMENTS DEPT. 

DEC l 6 1998 

SANFRA 
PUBLIC 



Mayor's Office of Housing (MOH) 



Hearing to consider the release of reserved funds of 
$435,258 including $381,491 from Community Housing 
Rehabilitation Program (CHRP) Pools and $53,767 from 
the Housing Program Administration, to rehabilitate (a) 
a building located at 1601 Howard Street owned by the 
Tenderloin Neighborhood Development Corporation and 
(b) the San Christina Hotel located at 1000 Market 
Street owned by the Community Housing Partnership. 

$435,258 



1998 Community Development Program 

CHRP Pool $381,491 



Housing Program Administration 
Total 



53.767 



$435,258 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

Description: In approving the 1998 Community Development Block 

Grant Program (Resolution 121-98), the Board of 
Supervisors reserved $53,767 for Housing Program 
Administration and $381,491 for the CHRP Pool. The 
Mayor's Office of Housing (MOH) is now requesting the 
release of the previously reserved funds of $435,258 
including $381,491 from the CHRP Pool and $53,767 
from Housing Program Administration funds to 
rehabilitate the following two buildings: 

1601 Howard St. 

(Tenderloin Neighborhood Development 

Corporation, TNDC $421,721 

San Christina Hotel at 1000 Market St. 

(Community Housing Partnership, CHP)) 13,537 

Total $435,258 

The $421,721 will be added to an amount of $450,000 
previously allocated by the Board of Supervisors for the 
rehabilitation of 1601 Howard Street for a total project 
cost of $871,721. The rehabilitation involves the repair of 
12-two bedroom housing units. The building also 
contains commercial spaces including a work studio and 
office space. The 12 rehabilitated two bedroom housing 
units will provide affordable housing to low income 
families. 

The $13,537 will be added to an amount of $206,463 
previously allocated by the Board of Supervisors 
primarily for the repair of the elevator in the San 
Christina Hotel at 1000 Market St. for a total repair cost 
of $220,000. The San Christina Hotel provides 58 
housing units to formerly homeless individuals. 



Budget: A budget for each of the two projects, provided by MOH, 

is contained in the Attachment to this report. 

Comments: 1. According to Mr. Higashi of MOH, Housing Program 

Administration funds are normally used for staffing and 
other operating funds for HDCs. Mr. Higashi states that 
MOH has determined that the $53,767 on reserve is no 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



longer needed for Housing Program Administration and 
can be released for the requested rehabilitation work. 

2. The rehabilitation funds will be provided to the TNDC 
and CHP as 50-year deferred payment loans. According 
to Mr. Higashi, these loans require the building owner to 
retain the housing units for the use by low-income 
recipients. 



Recommendation: Approve the requested release of reserved funds. 



Attachment 

Page 1 of 2 Pages 



1601 Howard St/Tenderloin Neighborhood Development Corporation 

The Tenderloin Neighborhood Development Corporation recently completed a more 
thorough analysis of the rehabilitation needs at 1601 Howard Street. The updated 
scope of work and cost estimates now indicate that at least $871 ,721 will be needed to 
complete the renovation. Since $450,000 has already been approved in the 1998 
CDBG budget for this project, another $421,721 of CDBG funding is needed. 



Construction 

Health and Safety Upgrades ( sprinklers, 91,751 

signage, alarms, etc.) 

Plumbing, wall finishes, windows 80.804 

Exterior siding repair and weather proofing 67,771 

Disabled Access improvements 1 12,275 

Substantial rehab, of two additional units 100,000 

Overhead and Profit 60,118 

Construction Contingencies 92,077 

Subtotal Construction 

Soft Costs 

Architecture 25,577 

Other Design Professionals 7,755 

Building Permit/Fees 20,710 

Developer Fee and Admin. 48,903 

Insurance 2,643 

Temp. Tenant Relocation Expenses 2.787 

Soft Cost Contingency 12,000 

Subtotal Soft Costs 



604,795 



120.375 



Financing Costs 

Repayment of existing Loan Principal 122,651 

Interest on existing Loan 19,202 

Title Insurance/Recording fee for new Loan 4,693 

Subtotal Financing Costs 

Total Budget 



146,551 
871.721 



Attachment 

Pase 2 of 2 Pages 



1000 Market StJCommunity Housing Partnership 

The Community Housing Partnership recentiy completed a more thorough analysis of 
the capital improvement needs at 1000 Market Street The updated scope of work and 
cost estimates now indicate that at least 5220,000 will be needed to complete the 
renovation. Since 5206,463 has already been approved in the 1998 CDBG budget for 
this project (note to Budget Analyst $56,463 was allocated to this project from the 
Feb. budget line item for 'Supportive Housing for homeless and disabled persons" and 
$150,000 was allocated from the 'CHRP Contingencies" line item.) another 513,537 of 
CDBG funding is needed. 

Construction 

Demolition/shoring/dewatering 1 0,379 

Elevator Replacement 110 ,245 

Wall/floor finish work 1 0,500 

Mechanical/Electrical 13,900 

General Conditiions 23,006 

Overhead/Profit 23,470 

Construction Contingencies 12,200 

Subtotal Construction 203,700 

Soft Costs 

Architecture 2,500 

Other Design Professionals 3,800 

Building Permit/Fees 3,000 

Developer Admin. 5,000 

Subtotal Soft Costs 14,300 

Financing Costs 

Title Insurance/Recording fee for new Loan 2,000 

Subtotal Financing Costs 2,000 

Total Budget 220,000 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



Item 2 - File 98-2021 

Department: 

Item: 



Amount: 
Source of Funds: 

Description: 



Mayor's Office of Community Development (MOCD) 

Hearing to consider the release of reserved funds from the 
Emergency Shelter Grant Program (ESGP), in the amount of 
$200,000, to renovate a basement to be used as the 
Community Awareness and Treatment Services Project 
(CATS) "A Man's Place" Drop-In Center for homeless men 
and women. 

$200,000 

$200,000 in monies reserved in MOCD's 1998 budget for the 
ESGP. 

The U.S. Department of Housing and Urban Development's 
Emergency Shelter Grant Program (ESGP) was first 
established under the Stewart B. McKinney Homeless 
Assistance Act in July of 1987. ESGP is designed to: (1) 
improve the quality of existing emergency shelters for the 
homeless; (2) expand the supply of emergency shelter beds; 
and (3) pay the costs of operating emergency shelters, 
including supportive social services. 

MOCD is responsible for administering and monitoring 
ESGP. Program funds are budgeted in five categories, 
including three program categories (Essential and Social 
Services, Maintenance and Operating Expenses, and 
Homeless Prevention Services), MOCD Administration, and 
an Emergency Shelter Grants Pool. The total 1998 ESGP 
budget is $984,000. 

The Board of Supervisors reserved $215,000 of the $984,000 
1998 ESGP budget for the Emergency Shelter Grants Pool, 
pending identification of contractors and submission of 
budget details of the homeless services projects to be funded 
(File No. 98-218). Current reserved funds are $200,000 (File 
No. 98-800). 

According to MOCD, the requested release of $200,000 from 
the previously reserved funds of $215,000 would pay for the 
renovation of the basement in a building owned by the 
Archdiocese of San Francisco located at 399 Fremont Street. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

6 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

A portion of this building is leased to the Community 
Awareness and Treatment Services Project (CATS), a 
nonprofit agency, which operates the "A Man's Place" project 
in this building, including (1) an emergency shelter program, 
which provides emergency shelter for up to 100 homeless 
men on a daily basis, and (2) a transitional housing program, 
which provides 18 homeless men with a nine-month 
substance abuse and employment information program. The 
basement of this building currently provides a storage area 
and laundry services for the shelter program on the first floor 
of the building, and for the transitional housing program on 
the second floor. 

According to Mr. Terry Hill of the Mayor's Office on 
Homelessness, the proposed renovation of the basement 
would enable CATS to use the basement as a new Drop-In 
Center for homeless men and women seeking information on 
the availability of services including legal and medical aid, 
location of treatment centers, transitional housing 
emergency shelter, counseling, etc. Mr. Hill states that the 
Drop-In Center's secondary function would be to provide 
locker, shower, and laundry facilities to these homeless 
individuals. The Drop-In Center would be open 24 hours a 
day and Mr. Hill estimates it would serve 100 clients durin^ 
the course of a 24 hour day. 

The renovation work to the basement would include the 
installation of two new showers, 170 lockers 1 , one new 
restroom facility, a new heating and ventilation svstem, 
electrical and water main upgrades, new flooring, new doors 
and a new window. Also as part of the renovation work, the 
one existing restroom facility in the basement would be 
expanded to include an additional sink and two additional 
toilets, and a new laundry facility would be installed on the 
first floor. 

Budget: $200,000. Attachment I provided by MOCD contains a 

budget for the proposed renovation project. 

Comments: 1. Attachment II provided by MOCD contains an explanation 

for the proposed renovation work. 



Mr. Hill states that 20 of these lockers would be specially designed for persons with disabilities. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

7 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

2. According to Mr. Jon Pon of MOCD, CATS is in the 3 rd 
year of a nine-year lease with the Archdiocese of San 
Francisco for the building at 399 Fremont Street. Under the 
terms of CATS' lease with the Archdiocese, the residual value 
of any improvements to the building paid for by the City is to 
be paid back by the Archdiocese to the City when CATS 
vacates the building. 

Recommendation: Approve the requested release of reserved funds in the 
amount of $200,000. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



12-10-98 04:00pm Frcm-UAYORS OFC COW DVP 



14158610442 



Attachment I 
T-034 P 02/02 F-0S3 



Supervisor Teng 

December 1, 1998 

Page 3 



Community Awareness and Treatment Services 

A Man's Place 

3S9 Fremont Street 

1998 ESGP Program 
Proiect Budget 



Proposed Improvements 



Cost estimates 



1 . Remove and alter interior partitions/counters 

2. Install two showers 

3. Upgrade electrical outlets and lighting 

4. New toilets and sinks 

5. New heating system in Lounge 

6. New exhaust system in Lockers/Storage 

7. Upgrade water main and electrical panels 

8. Install new personal laundry room and hookups 

9. Flooring 

1 0. Doors and window 

1 1 . Storage lockers 

12. Architectural & Engineering Services 



15,000 

20,000 

20,000 

7,000 

30,000 

10,000 

40,000 

10,000 

5,000 

7,000 

18.000 

18.000 



TOTAL 



$20C D00 




12-10-1998 4:25PM FROM MAYOR'S HOMELESS CFC -115 252 3118 p. 2 

Attachment II 



Office of the Mayor &S^^9m Willie Lewis Brown, Jr. 

SAN FRANCISCO 



Memorandum 

To: Richard Raya, Budget Analyst 

Fn Terry E, Hill, Mayor's Homeless Coordinator 

Date: December 10, 199S 

Re: 399 Fremont Drop-In Center 

The Continuum of Care Five Year Strategic Plan calls for a variety of services that address the 
full spectrum of needs experienced by homeless people. Currently San Francisco has no 
centralized access point to services for single men and women. The Drop-In Center on the lower 
level of the 399 Fremont building will serve as an access point to the City's emergency service 
system and address this gap in services at the front end of San Francisco's Continuum of Care. 

Tn addition to serving as the primary information and referral source to City services, the Drop-In 
Center will provide much needed showers, lockers, mail and message services for persons 
seeking employment and housing. Currently there are no storage alternatives for individuals 
using shopping carts. The center will provide lockers in exchange for shopping carts. 

The Drop-In Center renovation includes the following: 

A. Reception Area at front to be a simple 6' counter with clear site line to lounge and 
Control/Towel center. (2) cubical partition (8' x 8' and 8' x 6') for intake desk and 
computers. Coffee / snack counter directly next to cubicals. 

B. Washer/Dryer Area for 2-washers, 2 dryers located next to proposed Laundry Room for use 
by CATS. Counter space next to washer/dryers. 

C. Convert existing bathroom into Laundry Room for CATS. 

D. Women's and Men's Shower/toilet Rooms side by side. Code requires (2) showers and (2) 
toilets due to number of occupants. 

E. Open lounge area for television, seating, tables. 

F. Central Control/Towel Center Counter for one person with securable door to close off one 
side from the other. Storage for disposable towels and supplies will be included. 

G. Lockers: Tnerc will be 150 lockers with a combination of 15" single and 24" double doors. 
An additional 20 lockers will be made available for persons with disabilities. 

It is expected that users of the storage space will require access to their lockers an average of 
three times per week. Based on this figure we estimate 100 unduplicated individuals will use the 
Drop-In Center daily. 



IOr VAN NESS AVtNUI. ROOM 330. JAN PRA.NC13CO. CALirORNIA »< 1 03 

RECYCLED f>Af>EF> 



10 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

Item 3 - File 98-2035 



Department: 



Item: 



Department of Administrative Services, Convention 

Facilities 

San Francisco Redevelopment Agency (SFRA) 

Release of reserved funds in the amount of SI, 093, 000 for 
the purpose of reimbursing the San Francisco 
Redevelopment Agency for capital improvements made to 
the Moscone Convention Center. 



Amount: 
Source of Funds: 



$1,093,000 

Previously reserved 1994 San Francisco Redevelopment 
Agency (SFRA) Lease Revenue Bond Proceeds and 
Convention Facilities Funds 



Description: 



The Board of Supervisors previously approved a 
supplemental appropriation of 1994 SFRA Lease Revenue 
Bond proceeds ($15,700,965) and Convention Facilities 
Fund monies ($16,416,384) for a total amount of 
$32,117,349 in 1995 to provide funding for (1) debt service 
payment for the SFRA Hotel Tax Revenue Bonds (Series 
1994) in the amount of $553,504, (2) debt service payment 
for the SFRA Lease Revenue Bonds, (Series 1994) 
(Moscone Convention Center) in the amount of 
$1,376,015, (3) various capital improvements to the 
Moscone Convention Center in the amount of 
$22,973,794, and (4) construction of the Children's Center 
in the amount of $7,214,036 to be located on the roof of 
Moscone Convention Center South. The Board of 
Supervisors reserved $22,973,794 of the $32,117,349 
supplemental appropriation pending the selection of 
contractors and the submission of contract cost details 
(File 101-94-76). 

Of the $22,973,794 in previously reserved funding for 
capital improvement projects to the Moscone Convention 
Center, the then Budget Committee of the Board of 
Supervisors released $679,500 in 1995 for the purpose of 
developing the bid specifications and architectural 
drawings for the capital improvement projects at the 
Moscone Convention Center. The Budget Committee 
subsequently released $165,300 in February of 1996 and 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

11 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

$778,277 in December of 1996 for such capital 
improvement projects at the Moscone Convention Center. 
In July of 1997, the Finance Committee approved the 
release of $1,647,514 for capital improvement projects at 
the Moscone Convention Center, and in January of 1998, 
the Finance Committee approved the release of $243,479 
to purchase and install equipment and facility 
modifications for a comprehensive recycling program at 
the Moscone Convention Center, resulting in a remaining 
balance on reserve of $19,459,724 for capital 
improvement projects at the Moscone Convention Center. 

This request would authorize the release of $1,093,000 
from the balance of $19,459,724 remaining on reserve to 
partially reimburse the SFRA for costs of $2,587,000, 
which have been already incurred for capital 
improvements at the Moscone Convention Center, 
including (1) waterproofing the south roof of the Moscone 
Convention Center at a total cost of $1,575,000, (2) 
construction of the Esplanade Ballroom terrace and 
emergency stairs at a total cost of $814,000 and (3) 
replacement of the Folsom Street sidewalk, curb, trees 
and parking strip outside the Moscone Convention Center 
at a total cost of $198,000. Attachment I, provided by Mr. 
Jack Moerschbaecher of the Department of 
Administrative Services (DAS), Convention Facilities, 
describes in general each of these capital improvement 
projects at the Moscone Convention Center. 

Budget: According to Mr. Ted Maniatis of the SFRA, the three 

subject capital improvement projects at the Moscone 
Convention Center have already been completed at a total 
cost of $2,587,000. Attachment II. provided by Mr. 
Maniatis, contains detailed descriptions and total costs by 
project, totaling $2,587,000. for the three subject capital 
improvement projects. The balance of $1,494,000 (total 
project costs of $2,587,000 less this request of $1,093,000) 
was funded from previously approved Hotel Tax Revenue 
Bonds (Series 1994), according to Mr. Maniatis. 

Comment: Mr. Maniatis advises that the SFRA awarded two 

contracts, totaling $38,619,000, to the firms of Switherton 
& Walberg and D.J. Amoroso for construction work at the 
Moscone Convention Center. These contracts included 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

12 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

the $2,587,000 in work needed for the three subject 
projects. 

Recommendation: Approve the requested release of reserved funds. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

13 



11/18/98 THU 17:18 F.U 415 978 M OSCONE_ EXPANSION PROJ KQ002 

Attachment I 
November 19. '998 



The necessity c : a new waterproof membrane for the roof of Moscone 
South was identified in 1994 during an assessment of that facilities 
Infrastructure. 1 lis capital project was deferred until 1998 because of the 
Redevelopmenl Agency's (RDA) Children's Center construction. 
Postponing the ~iew waterproof membrane was prudent fiscally because 
the RDA neeced to open up the roof to construct their buildings. 
Therefore, in order not to do the job twice, the RDA agreed to have its 
contractors perprm the work during the construction of the Children's 
Center. The/^^BlIJOfris the City's share of that cost. 

The RDA constn tcted the Esplanade Ballroom Terrace for the City for the 
same reason a; In paragraph no. 1. The terrace was not immediately 
constructed wh an the Esplanade Ballroom was opened because It would 
have been partially demolished during the Children's Center 
Construction. Consequently. It was deferred until 1998 and now can be 
used by converrioneers. The Cost Is $135,000. 

The need for the Esplanade Ballroom Emergency stairs only arose 
because of the Esplanade Ballroom Terrace construction. The building 
code requires nore exiting capacity from the rooftop. The cost wcs 
$227,000. This is i life safety issue. 

The street, sidewalk and curb replacement were necessitated by the fact 
that the trees tie City planted on the Folsom Street side of Moscone 
Center had root; which eventually buckled the sidewalk and cracked the 
curb and streel This created a serious tripping hazard and potential 
liability for the C fy. Once again it was prudent to only do the work once. 
Therefore, the ioo was deferred until after the RDA completed its 
construction. Ttv? cost to the City is $1 50.000. 



H:common/rgrim/)mo. rs^clcnade Emer/1 1-19-98 



14 



DEC. 10. 1998 3:20PM ! m - L - m l 1/4 



Attachment II 
Page 1 of 4 



(21 SN 



MEMORANDUM 
DATE: December 10, 1998 
TO: J Gabe Cabrera 



j ERCJR-TedMamariC^CV" 

! RE: i Yerba Bucna Gardens Children's Center 
Moscone Center Improvement Costs 



i BACKGROUND 

! During the planning of the Children's Center Development for the rooftop of Moscone Center 
• South, it became apparent that there were a number of improvements required by Moscone Center 
i that would be logical and beneficial to have completed by the Children's Center contractors during 
1 the course of its construction. These improvements were identified and a pre limin ary budget value 
j of $1^000,000 was agreed to between the Redevelopment Agency and the Department of ! 
; Administrative Services. After plans were drawn, reviewed and approved by the DAS, bids were 
! taken 1 and contracts were awarded in strict accordance' with the bid and award requirements of the 
| City, iState and the Redevelopment Agency. In an effort to get the project underway at the earliest 
| time possible: and in order to assure a good competitive bidding environment the project wis 
i divided into two main bid packages, 1) The Buildings which included most of the overall site 
i preparation and 2) The Gardens which included most of the improvements related to the Moscone 
i Center. 

i The work is how 99% complete and the City share of the cost which is less than 50% of the actual 
j cost of the MCC improvements has been agreed to between the SFRA and the DAS at 51,093,000. 

'iMCC/DAS AND SFRA COST SEGREGATION 

j Due to the integral nature of the Children's Center and Moscone Center improvements it was not 
| possible or practical to separate the Moscone Center costs as a requirement of the bid; however, 
j after the award of lump sum contracts to the low bidders, contractors submitted their 'Schedule of 
i Values' which listed dollar values for the various portions of the work . The 'Total Construction 
■ Cost' 'amounts listed below are taken from the Buildings and Gardens Contractors Schedules of 
. Values. A copy of these schedules are submitted for ready reference. Total Construction Costs do 
[not include consultant's design fees, construction management fees or other soft costs. 

:1) Re-roofing and waterproofing: 

jTotal Construction Cost $ 1 ,57 5 ,000 

IMCC share: j S 581,000 \ 



DEC. 10. 1998 3:21PM 



Attachment II 
Page 2" of 4 



Re-roofing and waterproofing includes: 

a) removal]of existing insulation and stone ballast over the main roof area (220,000 s.f.), 

b) replacement of thermal insulation 

c) installation of a concrete topping slab to improve drainage 

d) relocation and addition of roof drains 

e) removal and replacement of landscape materials including irrigation on 4 1 " Street and Folsom 
Street berms (20,000s.f.) Soil and lightweight fill in these areas ranged in depth from T to 
12'. 

f) repairs to existing but inoperative MCC drainage discovered during construction. 

g) removal and replacement of landscape materials including irrigation of a large planter 
immediately west of the MCC Lobby (9,000 s.f.) Soil and lightweight fill in this area averaged 
over 5' in depth. 

h) installation of waterproofing , 

Items a), most of c) and e) were included in the Swinerton and Walbexg Construction Co. 
contract. The balance of the work was furnished by Dennis J. Amoroso Construction Co. 






2) Esplanade Ballroom Terrace and Exit Stair to Folsom Street 



Total Construction Cost 
MCC share 



S8 14,000 
$362,000 



The MCC Esplanade Ballroom opens onto the roof of the MCC. Before the improvements, an area 
of the roof was demarcated with large concrete planters and paved with concrete blocks that 
provided the ballroom with a usable outdoor space for special events. This was removed for the 
new waterproofing and replaced with a colored concrete seeded aggregate paving bounded by 
landscaping and separated from the rest of the Children's Center roof development by fencing and 
ornamental metal gates in order to allow for separate and independent use by the Moscone Center. 
The replacement paving is a significant upgrade from the original paver blocks. 

'< i 

A large component of the emergency exiting requirements from the Esplanade Ballroom is onto the 
i Esplanade Terrace. Prior to development of the Children's Center, the exit path from the Ballroom 
i was across the entire length of the rooftop to a ramp thai led to the comer of 4* and Howard 
: Streets. In order to provide rooftop space for the development of the Children's Center, more 
! direct exiting onto Folsom Street was required and a large (60' wide x 24' high) stairway was 
■ constructed. Construction of the stairway was complicated by the fact that large portions of the 

stair had to be made removable for access to PG&E transformers located in the building area 

below. The top of the stair is gated to preserve the privacy of the Esplanade Ballroom Terrace, 
i 

This area of work awarded to the Dennis J. Amoroso Construction Co. includes: 



a) removal of concrete pavers and insulation 

b) removal of large concrete planters ( at the direction of MCC, these were donated and relocated 
tolthe S J. Zoo) 

instal l at i on of a topping slab for better drainage 
temporary protection of the MCC Esplanade glass curtain wall 
installation of colored concrete paving with a seeded aggregate finish 

f) landscaping and irrigation 

g) fencing and gates , 
h) installation of stairs with handrails and metal nosings 

i) new drainage grates and plumbing 
•j) lighting and electrical 



«0 
e) 



16 



DEC. 10. 1998 3:21PM 



j NO. 4972 :P. 3/4 

Attachment II 
Page 3 of A 



3) ; Folsom Street Sidewalk and Street Improvements: 



Total Cons auction Cost 
MCC Share i 



5198,000 
$150,000 



The sidewalk, curb and parking strip along Folsom St. was in severe disrepair p rimar ily caused 
from lifting of the pavement by the roots of large Poplar trees which were planted at the time of the 
original MCC construction. The City and the Agency unsuccessfully petitioned the DPW to allow 
removal and replacement of all the trees as well as to completely replace the sidewalk, curb and 
parking strip, however, as a result of public hearings for the removal of the trees, 8 of 13 were 
required to remain. Since removal of the sidewalk curb and parking strip would damage the root 
structure of the trees and cause them to die this area of walkway (240') will be repaired to improve 
drainage and smooth concrete edge tripping hazards. Where the trees were allowed to be removed, 
the sidewalk: curb and parking strip were completely removed and replaced, and the trees in this 
area were replaced with large Sycamores. The balance of the block will have the sidewalk and 
parking stripj repaired with some new trees added Continued maintenance of the pavement will be 
required until removal of the trees is allowed. : 

This area of work awarded to the Dennis J. Amoroso Construction Co. includes: 

,. , . i 

1) tree and root removal 

2) pavement demolition 

3) pavement replacement and repairs 

4) tree replacement 

5) new irrigation 

6) new and relocated catch basins 



COST SUMMARY 



1) Re-roofing & Waterproofing 

2) Esplanade Terrace & Exit Stair 

3) Folsom Street Improvements 

TOTALS 
BIDDING DATA 



CONSTRUCTION COST 

$1,575,000 
S 814,000 
S 198.000 

$2,587,000 



MCC SHARE 

$ 581,000 
$ 362,000 
$ 150.000 

$1,093,000 : 



On February 29, 1996 five bids were received for the Children's Center Buildings. These five 
were:; i 



Roberts-Obayashi 
Morse Diesel 
N. L. Barnes 
S. J. Amoroso 
Swjncrton & Walberg 



$31,780,000 
$30,495,000 
$30,313,000 
$30,038,000 
S29.363,000 



', On April 9, 1996, the Redevelopment Agency Commission adopted a resolution to award this 
I contract to the Swinerton & Walberg Co.in the amount of S29,363,000. 

I On February 5, 1997, three bids were received for the Children's Center Gardens. These three 
[were:' ! 



17 



DEC. 10. 1998 3:21! 



U972 'P. 4/4 

Attachment I 
Page A of A 



S. J. Amoroso 
Swinerton & Walbcrg 
Dennis J. Amoroso 



$10,529,000 
$ 9,985,000 
$ 9,858,000 



On April 8, 1997, the Redevelopment Agency Commission adopted a resolution to award this 
contract to Dennis J. Amoroso in the amount of 59,256,000 ($9,858,000 - 5602,000 in deductive 
alternates). 

SOURCE QF FUNDS 

i : 

Construction' costs for the Yerba Buena Gardens Children's Center are funded by Hotel Tax 
Revenue Bonds Series 1994. 



18 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

Items 4 and 5 - Files 98-1961 and 98-2003 



Department: 



Item: 



Amount: 
Source of Funds: 

Description: 



Department of Public Healtb (DPH) 

Department of Agriculture and Weights and Measures 

Item 4. File 98-1961: Ordinance amending Ordinance No. 
243-98 (Annual Salary Ordinance FY 1998-99) reflecting 
the creation of 1.5 positions for the Department of 
Agriculture and Weights and Measures. 

Item 5. File 98-2003: Release of reserved funds, allocated 
to Department of Public Health, in the amount of 
$100,000 from the Mangini v. R.J. Reynolds Tobacco 
Company, et al. tobacco settlement for work order 
enforcement services to be provided by the Department of 
Agriculture and Weights and Measures for the 
Department of Public Health. 

$100,000 

Previously reserved funds from the Mangini v. R.J. 
Reynolds Tobacco Company, et al. tobacco settlement 

In October of 1998, the Board of Supervisors approved an 
ordinance, File No. 98-0140, appropriating $1,500,000 
from the Mangini u. R.J. Reynolds Tobacco Company, et 
al. tobacco settlement revenues to the Department of 
Public Health (DPH) Community Health Service to fund 
health education and enforcement programs to discourage 
minors from smoking. Of the total funds of $1,500,000, 
the Board of Supervisors placed $553,405 on reserve, 
including $453,405 for professional services pending the 
results of Phase I of the project and $100,000 pending 
submission of the necessary amendment to the Annual 
Salary Ordinance for new positions at the Department of 
Agriculture and Weights and Measures for the provision 
of enforcement services related to smoking by minors. 

This request would authorize the release of $100,000 from 
the previously reserved funds of $553,405 to fund 1.5 new 
Limited Tenure positions, including one Inspector of 
Weights and Measures and a .5 FTE Clerk Typist, for the 
one-year period of February 1, 1999 to January 31, 2000 
for the Department of Agriculture and Weights and 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

19 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



Measures to provide enforcement services related to 
smoking by minors for DPH, leaving the balance of 
$453,405 on reserve. 

Attachment I, provided by Mr. Sid Baker of the 
Department of Agriculture and Weights and Measures, 
describes in detail the responsibilities of the requested 1.5 
new Limited Tenure positions. Mr. Baker states that the 
positions "will serve for enforcement of the City tobacco 
ordinance in conjunction with simultaneous weights and 
measures enforcement in establishments selling tobacco 
products." 

The proposed ordinance, File No. 98-1961, would amend 
the FY 1998-99 Annual Salary Ordinance, by creating 1.5 
new Limited Tenure positions for the Department of 
Agriculture and Weights and Measures to provide the 
subject enforcement services for DPH related to smoking 
by minors, as follows: 



No. of FTE 

Positions Classification 

1 6220 L 



1424 L 



Title 


Step 1 
Biweekly- 
Annual) 


Step 5 
Biweekly- 
Annual) 


Inspector of Weights 
and Measures 


$1,391. 
36,305 


$1,686 
44,005 


Clerk Typist 


SI. 161 
30,302 


$1,404 
36,644 



1.5 Total 



The annual cost of the requested 1.5 Limited Tenure 
positions would range from $74,594 at Step 1, including 
salaries of $66,607 and fringe benefits of $7,987, to 
$90,330 at Step 5, including salaries of $80,649 and fringe 
benefits of $9,681 (see Comment No. 1). 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

20 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

Budget: The requested budget of $100,000 for the one-year period 

of February 1, 1999 to January 31, 2000 is as follows: 

$66,607 Permanent Salaries (see Comment No. 1) 

19,200 Automobile for Inspector Field Work 

10,235 Computer Equipment & Services 

600 Telephone Equipment & Services 

325 Camera Equipment 

1,900 Inspector Kit and Pager 

733 Tobacco Enforcement Forms 

275 Mail Services 

125 Miscellaneous Supplies 

$100,000 Total 

Attachment II, provided by Mr. Baker, contains the 
details to support this $100,000 budget request. 

Comments: 1. This request of $100,000 (File No. 98-2003) would 

allocate $66,607 in Permanent Salaries (including 
$36,305 for the Inspector and $30,302 for the Clerk 
Typist), assuming one FTE Inspector of Weights and 
Measures position and one FTE Clerk Typist position. 
However, as previously noted, the Clerk Typist position is 
0.5 FTE. Therefore, funding for Permanent Salaries for 
the Clerk Typist position should be reduced by $15,151, 
from $30,302 to $15,151 for a total budget for Permanent 
Salaries of $51,456 (including $36,305 for the Inspector 
and $15,151 for the Clerk Typist). 

2. This request of $100,000 does not include Mandatory 
Fringe Benefits for the one FTE 6220 Inspector of 
Weights and Measures, in the amount of $7,987. As such, 
$7,987 should be added to the subject requested release of 
reserved funds to include the $7,987 for Mandatory 
Fringe Benefits. 

3. File No. 98-1961 would amend the Annual Salary 
Ordinance to create 2.5 new Limited Tenure positions for 
the Department of Agriculture and Weights and 
Measures. The correct number of new Limited Tenure 
positions is 1.5. As such, the proposed ordinance should 
be amended. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

21 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

Recommendations: 1. In accordance with Comment No. 1, reduce the request 
for release of reserved funds for Permanent Salaries by 
$15,151, from $66,607 to $51,456 (File No. 98-2003). 

2. In accordance with Comment No. 2, increase the 
request for release of reserved funds to include the $7,987 
for Mandatory Fringe Benefits (File No. 98-2003). 

3. In summary, this request of reserved funds should be 
reduced by $7,164, from $100,000 to $92,836 and approve 
the release of reserved funds as adjusted. Continue to 
reserve the balance of $7,164 (File No. 98-2003). 

4. In accordance with Comment No. 3, amend the 
proposed amendment to the Annual Salary Ordinance to 
reflect that the correct number of new Limited Tenure 
positions for the Department of Agriculture and Weights 
and Measures is 1.5, and not 2.5 and approve the 
proposed ordinance as amended (File No. 98-1961). 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



/IB/1998 17:17 



4152B58776 




CITY AND COUNTY OF SAN FRANCISCO 

DEPARTMENT OF AGRICULTURE 

AND 

WEIGHTS AND MEASURES 



PAGE Bl 

Attachment I 
Page 1 of 2 



David C Frieders 

Agricntexural Covuntaaioaer 
Director of V. rtpio axl Mwn 



Sid E. Baker 

A w i irtmrt Agrkabanl CawhJaac 
Diractar of Weighn and Mmn 



MEMORANDUM 



TO: 


Gabe Cabrera 




Budget Analyst 


FROM: 


Sid Baker, Assistant 


DATE: 


December 10, 1998 




SUBJECT: 



ASO No. 243-98, Attachment I, Job descriptions, 1.5 positions 



The Department of Agriculture and Weights and Measures is a regulatory agency 
providing both consumer and environmental protection enforcement for the city and 
county. The 1.5 employees amended to this salary ordinance will serve for enforcement 
of the City tobacco ordinance in conjunction with simultaneous weights and measures 
enforcement in establishments selling tobacco products. The half time clerical position 
will serve to assist in data input and the development of our establishment and tobacco 
data base for violation and call back documentation. 



LIMITED TENURE POSITIONS 



CLASSIFICATION 



1424 Clerk Typist, .5 



The half time 1424 Clerk Typist will work under direct supervision and with the field 
inspector doing tobacco and weights and measures enforcement. The person in this 
position will assist in compiling, posting and maintaining a vairety of technical, statistical 
and financial data for both enforcement programs. The clerical person will perform word 
processing tasks including calendaring tobacco violation time lines, statistical reporting, 
reports and documents. In addition the clerical person will assist the tobacco program by 
disseminating information and logging complaint calls and responses for enforcement 
progression, answering telephone calls, recording complaints and scheduling call backs 



D tfrt— I of Afrtc-atarr 
SOI Cnar Dora Sake 109 -A 
Su Frudsco, CA 941X4 
(413)2*5-0010 



Akmany F imi r'i Marbd 

100 AImmj V**4. 

5<n Frmdara. CA 94110 

(415) 447-9423 



501 Cew Qbb, Soli 109-A 

9m FnBdm, CA 94124 

(415) 2*5-5012 



23 



:2/10/199B 17:17 4152e5S77B PAGE Z7 

Attachment I 
Fage 2 of 2 



MEMORANDUM ATTACHMENT I Page 2 

Amending ASO No. 243-98 



CLASSIFICATION 6220 L Inspector of Weights and Measures, 1 

The full time 6620 Weights and Measures Inspector is a field inspector who enforces laws 
and regulations in business establishments. This inspector will simultaneously inspect for 
violations of the tobacco ordinance and weights and measures laws. In the field he/she 
will interpret and apply relevant laws to observed violations during the inspection. This 
Weights and Measures inspector position requires state licensing qualifications and will 
simultaneously function to enforce the Tobacco Ordinance in establishments where 
tobacco products are sold. This inspector will also be establishing weights and measures 
and tobacco data for field records and continuing use. This Weights and Measures 
Inspector will also performs annual school district scale inspections and tobacco 
inspections within the one block radius of the schools as requested by the Board. The 
budgeted vehicle will used by this inspector. 



24 



n-i ±<3/ 1330 u:jb 



QlS/tiSti/ /b 




CITY AND COUNTY OF SAN FRANCISCO 

DEPARTMENT OF AGRICULTURE 

AND 

WEIGHTS AND MEASURES 



PAGE 01 

Attachment II 
Page i of 2 



David C. Frieders 

Ajrtcalrwl Cnmnri—tonw 
Director ofWtl(te and Manm 



Sid E. Baker 

Director oTWeighto mi Mamma 



MEMORANDUM 



TO: 



FROM. 



DATE: 



SUBJECT: 




Gabc Cabrera 
Budget Analyst 

Sid Baker, Assistant 

December 10, 1998 



Amended tobacco enforcement budget, re ASO No. 243-98 



The amended, corrected budget below will provide resources and essential personnel for 
tobacco ordinance enforcement and simultaneously augment the enforcement of weights 
and measures laws. The service start date will be February 1, 1999 through the end date of 
January 31, 2000 for the total of $100,000. 

One FTE 6220 Weights and Measures Inspector, salary and benefits, Step 1, 

[l/yr=40hrsAveek, Feb. 1, 1999 to January 31, 2000] 
$36,305 



One HTE 1424 Clerk Typist, salary, NO benefits, Step 1, 
[l/yr=half time, under 1,044 hours per year] 

Sub total 



$30,302 
$66,607 



* 1 04000 Poloroid camera 


$100 




*X 04000 Poloroid film 


$225 




•1 081ET Telephone Hotline 


$250 




"104000 Cell phone 


$100 




*1 081ET Cell phone services 


$250 




•1 06026 Vehicle 


$19,200 




* 1 06000 Lap top 


$1,400 




* 1 04000 Portable printer w/powcr pack 


$375 




* 1 04000 PC carrying case 


$60 




DffBtromt of Acrknkm-t AJmwnr FarflMT'i 


iMitln 


Waigbtamd Manm 


S01CaarCterv«,MMl09-A. 100 Mmawj HJrA 


501 Ccaar CImvu. Scdta.l09-A 


Su Francbco, CA 94124 Sn Ftmebco. C* 


i 94110 


s« Fiwik», CA 94124 


(41S) MS 501 (415) 441-9423 


(415) 2«U5012 




25 





2/10/199B 13:36 4152858776 PAGE 



Attachment II 
Page 2 of 2 



MEMORAMDUM PAGE 2 

Date: December 10, 1998 

re ASO No. 243-98, reserve funds, amended tobacco enforcement budget 



* 1 08 1ET Pager w/service $250 
*X 04000 NCR formal copy $533 
*X 04000 forms/2 copy S200 
*X 04000 Misc. supplies $125 
•X 081PM Certified Mail [as needed] $175 
*X 081PM USPS mail $100 

* 06000 PC 52,300 
•X 04000 Software, database $2,000 
♦X081C5ISD services $4,100 

* 04000 Fractional weight kit, 1 gal prover $1,650 

TOTAL $100,000 $100,000 
Department of Agriculture and Weights and Measures 



26 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

Item 6 - File 98-1927 

Item: Resolution establishing an Advisory Board to make 

recommendations to the Board of Supervisors on 
the expenditure of revenues derived from 
assessments, on the classification of properties 
within, and on the method and basis for levying 
assessments upon, property located within the 
Union Square Business Improvement District. 

Description: California Streets and Highways Code Section 

36500 authorizes cities to establish Business 
Improvement Districts for the purpose of levying 
assessments on real property for certain purposes. 
In accordance with the California Streets and 
Highways Code, the Board of Supervisors is 
required to appoint an advisory board to oversee 
the implementation of the Business Improvement 
District. On December 7, 1998, the Board of 
Supervisors approved a resolution of intent to 
establish the Union Square Business Improvement 
District. In accordance with State requirements, 
the proposed resolution would establish the Union 
Square Business Improvement Advisory Board. 

The proposed resolution states that this Advisory 
Board would consist of 13 members, of which, at 
least seven would be property owners within the 
Union Square Business Improvement District, and 
at least five would be retail business licensees 
within the District, including at least one who is 
not a property owner within the District. According 
to the proposed resolution, one of the 13 Advisory 
Board members would be the President of the 
operating Board of Directors of the Union Square 
District (See Comment 3). 

The 13 Advisory Board members would be 
appointed by the Board of Supervisors from a list of 
nominees provided by the Union Square Business 
Improvement District Formation Steering 
Committee. The Union Square District Formation 
Steering Committee is one of the committees of the 
City Center Partnership, a non-profit organization, 
consisting of approximately 35 members who are 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

27 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

primarily merchants and property owners within 
the proposed Union Square Business Improvement 
District. For the past several years, the City Center 
Partnership has been providing some of the 
proposed hospitality, safety and street sweeper 
services, which would be included in the Union 
Square Business Improvement District. The Board 
of Supervisors would appoint Advisory Board 
members for five years, which is the same period of 
time for which the Union Square Business District 
is being created. If a vacancy occurs, the Board of 
Supervisors would appoint another member for the 
remainder of the term from a list of nominees 
provided by the Board of Directors of the City 
Center Partnership. 

In accordance with the proposed resolution, the 13- 
member Union Square Business District Advisory- 
Board would be responsible for (1) preparing the 
engineering report, which was recently completed 
and is required by Section 36633 of the State 
Streets and Highways Code for review and 
approval by the Board of Supervisors, (2) reviewing 
the budget and program priority recommendations 
submitted by the City Center Partnership, Inc. (3) 
making recommendations to the Board of 
Supervisors on the expenditure of revenues derived 
from the assessments on the property within the 
Union Square Business Improvement District, and 
(4) making recommendations to the Board of 
Supervisors regarding the classification of 
properties, within the District (See Comment 4) 
and the method and basis of levying assessments. 

Comments: 1. The proposed Union Square Business 

Improvement District annual budget proposal 
includes a City contribution of $200,000 per year, 
for five years, for a total contribution of SI. 000, 000. 
The allocation of the annual S200.000 in City 
contribution would be subject to appropriation 
approval by the Board of Supervisors. As 
mentioned above, under the proposed resolution, 
the Union Square Business District Advisory Board 
would be responsible for making recommendations 
to the Board of Supervisors on the expenditures of 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

28 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



revenues derived from the assessments on the 
property within the Union Square Business 
Improvement District, which are estimated to total 
$767,081, for the first year. 

According to Ms Linda Mjellem of the Union 
Square Association and the City Center 
Partnership, the $200,000 annual contribution 
from the City has been designated by the City to be 
used for steam cleaning. Ms. Mjellem reports that, 
although the Advisory Board might make some 
recommendations to the Board of Supervisors 
regarding the expenditure of such funds in future 
years, the Union Square Business District would 
expend the City's funds, in accordance with the 
City's direction. 

2. According to Ms. Mjellem, the 13-member 
Advisory Board members would serve without 
compensation. 

3. In addition to the proposed Advisory 7 Board, an 
11-member operating Board of Directors of the City 
Center Partnership would be elected by the 
property owners located within the Union Square 
Business Improvement District. This operating 
Board of Directors would be responsible for 
supervising the day-to-day operations of the Union 
Square Business Improvement District. As 
discussed above, the President of this Board of 
Directors would be one of the members on the 
proposed Advisory Board. 

4. Ms. Mjellem reports that one property, the Union 
Square Garage, within the Union Square Business 
Improvement District, was separately classified 
such that it would not be subject to the 
assessments proposed for the other Union Square 
property owners. According to Ms. Mjellem, the 
Union Square Garage was separately classified 
because it is the only property within the Union 
Square Business Improvement District that does 
not have ground floor retail tenants. The Union 
Square Garage is City property, under the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

29 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

jurisdiction of the Recreation and Park 
Department. 

Recommendation: Given that (1) the Board of Supervisors has already 

approved the resolution declaring the Board's 
intention to establish a Union Square Business 
Improvement District (File 98-1844), (2) the Board 
of Supervisors has scheduled a public hearing for 
January 25, 1999 to consider this matter and (3) 
the California Streets and Highways Code requires 
that an Advisory Board be established to oversee 
the implementation of a Business Improvement 
District, the Budget Analyst recommends approval 
of this proposed resolution to create a Union 
Square Business Improvement District Advisory 
Board . 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

30 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

Item 7 - File 98-1936 



Department: 
Item: 



Description: 



Department of Parking and Traffic (DPT) 

Ordinance amending the Traffic Code by adding Section 
131 to Article 7, adopting a penalty schedule for the late 
payment of parking tickets and providing that the Board 
of Supervisors may, by resolution, declare periods of 
amnesty during which late payment penalties would be 
forgiven upon prompt payment of the underlying parking 
citation fines. 

Prior to 1993, parking violations were designated as 
criminal offenses and the process of issuing and collecting 
parking citation fines was within the jurisdiction of the 
Municipal Court. In 1993, the State decriminalized 
parking violations and assigned parking violations to a 
civil status. In response to the changed designation, the 
City transferred responsibility for the process of issuing 
and collecting parking citation fines from Municipal Court 
to DPT. 



Comments: 



The proposed ordinance would amend the Traffic Code to 
include the current rate schedule for late payment 
penalties on parking tickets. Currently, the late payment 
penalty for failure to pay a parking citation fine or contest 
the underlying citation by the first due date affixed to the 
notice of parking violation is $12 and failure to pay by the 
second notice is $15. The proposed ordinance also states 
that the Board of Supervisors may, by resolution, declare 
an amnesty period for purposes of waiving late payment 
penalties on parking citation fines. 

According to Ms. Lori Giorgi of the City Attorney's Office, 
the late payment penalty schedule of $12 and $15 as 
previously noted and authorization for the Board of 
Supervisors to declare an amnesty period for purposes of 
waiving payment of late penalties contained in this 
subject legislation are not currently included in the 
Traffic Code. 

1. According to Ms. Julia Dawson of DPT, DPT*s current 
information technology does not separately account for 
parking citation fines and late payment penalties. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

31 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

However, Ms. Dawson reports that DPT estimates that of 
the total $49.3 million in parking citation fine revenue 
collected in FY 1997-98, approximately 11 percent or 
$5,423,000 was for payment of late penalties. In FY 1998- 
99, DPT expects approximately the same percentage of 
parking citation revenue to be the result of late payment 
penalties. Also, Ms. Dawson notes that with the 
implementation of the PRWT Sendees, Inc. contract, 
which is the contract previously approved by the Board of 
Supervisors for the Automated Parking Citation 
Processing and Collection System, DPT will be able to 
accurately calculate the revenue collected from late 
payment penalties imposed on parking citation fines in 
FY 1998-99. 

2. Ms. Dawson advises that the purpose of this proposed 
legislation is to amend the Traffic Code to include (a) the 
current late payment penalty schedule on parking 
citations and (b) the authorization for the Board of 
Supervisors to declare amnesty periods for purposes of 
waiving late payment penalties on parking citation fines 
in the Traffic Code. 

3. The attached memo from Ms. Dawson contains a brief 
explanation of how DPT envisions an amnesty program 
would work should the Board of Supervisors declare 
amnesty periods for purposes of waiving late payment 
penalties on parking citation fines. 

4. Based on (a) prior parking citation fine collections and 
(b) estimates of the amount collected for late payments on 
such citations, Ms. Dawson estimates that if the Board of 
Supervisors were to declare an amnesty program of, for 
example, a 15-day period with advance public media 
notification, then the estimated reduction in revenue to 
the City would be up to $1 million in late payment 
penalties which would not be realized by the City. 

Recommendations: 1. Approve the proposed amendment to the Traffic Code 
to include the existing late payment penalty schedule on 
parking citation fines. 

2. Approval of the proposed amendment to the Traffic 
Code to authorize the Board of Supervisors to declare 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

32 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



amnesty periods for purposes of waiving late payment 
penalties on parking citation fines is a policy matter for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

33 



DEC.-10'98(THU) 14:58 CITY I CO OF S. F. PARKING DEPT TEl/415 554 9854 

City and County of San Francisco 



B A M fBAMCISCO 




DEPARTMENT OF PARKING A TRAFFIC 



WILLIE LEWIS BROWN, JR., Mayor 

STUART R. SUNSHINE. EXECUTIVE DIRECTOR 





MEMORANDUM 

To: Budget Analyst 

From. Julia Dawson, Senior Administrative Analyst 

Subject: Description of Potential Amnesty Program 

Date: December 10, 1998 

According to the proposed ordinance, the Board of Supervisors would request an amnesty 
program by resolution. The purpose of an amnesty program is to provide the public who 
have unpaid parking citations that arc past the point of protest (21 days after the issue 
date of the citation) the ability to pay the original fine amount of the citation without 
penalty fees. At the request of the Board of Supervisors, the department would declare a 
length of time for the amnesty program to be in effect, usually berween two weeks and 
one month. In the past, the department made all parking citations that are within the 5- 
year statute of limitations eligible for amnesty. The department would advertise amnesty 
in various ways, including print ads, flyers, postcards, direct mail, and media 
announcements. The department would design the application process so tha it will be 
easy for the public to apply, including materials in multiple languages, and would 
distribute the application materials to as many locations as possible that are easily 
accessible. 



<41S,S S ^AIIK FAX,4 1S) «« H 4 H Van N.« Avcnu.. Si,U4 10 San FrancU^" *« 2jU7( 

34 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



Item 8 - File 98-2026 

Department: 

Item: 



Amount: 
Source of Funds: 

Description: 



Public Utilities Commission (PUC) 

Resolution approving the issuance of up to $225,000,000 
in aggregate principal amount outstanding at any one 
time of Public Utilities Commission Commercial Paper 
Notes (Water Series) pursuant to Chapter 84 of Part 1 of 
the Municipal Code, in one or more series, for the purpose 
of financing and refinancing certain capital improvements 
related to the Water Enterprise; approving the maximum 
interest thereon; and approving related matters. 

$225,000,000 

Commercial Paper Notes, to be repaid with PUC Water 
Revenue Bonds 

In June of 1998, the Board of Supervisors approved File 
98-738 which defined the procedure for the issuance by 
the PUC of Commercial Paper Notes and other short-term 
indebtedness in anticipation of proceeds from the issuance 
of previously authorized but unsold Revenue Bonds. 

Commercial Paper is a short-term financing instrument 
used by both corporations and municipal issuers. 
According to Mr. Phil Arnold of the PUC, short term is 
defined as 270 days or less. San Francisco International 
Airport is the only City agency that has issued 
Commercial Paper to date, as previously approved by the 
Board of Supervisors in June of 1997 (File 170-97-05). 
Commercial Paper is issued on an as-needed basis to meet 
short-term cash demands. In contrast to the 30-year 
bonds that are generally issued to finance capital costs, 
Commercial Paper maturities range from one to 270 days. 
According to Mr. Arnold, over the past 10 years, 
Commercial Paper interest rates in California have 
averaged approximately 2 percent less than long-term 
bond interest rates. 

This subject resolution would authorize the PUC to issue 
up to $225 million in Commercial Paper Notes for the 
purpose of financing and refinancing certain capital 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

35 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



improvements related to the Water Enterprise 1 , as well as 
for payment of costs of issuance and other incidental costs 
therefor. 

The subject Commercial Paper to be issued by the PUC 
would be repaid with previously authorized but unsold 
Revenue Bonds. In November of 1997, voters approved 
Water System Reliability and Seismic Safety Revenue 
Bonds in the aggregate principal amount of $157 million 
for the purpose of providing funds for acquiring and 
constructing reliability and seismic safety improvements 
to the water system, and approved Safe Drinking Water 
Revenue Bonds in the aggregate principal amount of $147 
million for the purpose of acquiring and constructing safe 
drinking water improvements related to the City's water 
system. The total authorized bond amount for the two 
issues is $304 million. 

The proposed resolution provides that the total principal 
amount of PUC Commercial Paper Notes at any one time 
outstanding, when combined with the total principal 
amount of outstanding Bank Notes (see Comment No. 5), 
shall not exceed $225 million, and, in the aggregate, such 
issuances shall not at any time exceed the principal 
component of the Letter of Credit. 

The principal component of the Letter of Credit is the 
maximum amount of debt that is authorized by the Letter 
of Credit, less the interest component. If the proposed 
resolution is approved, Mr. Arnold reports that the PUC 
intends to obtain a Letter of Credit from a bank for $30 
million initially, with quarterly increases up to the 
maximum amount of $150 million. The Letter of Credit 
for the initial amount of $30 million would have a 
principal component of $27.96 million and an interest 
component of $2.04 million. Therefore, the aggregate 
issuances of PUC Commercial Paper and Bank Notes 
shall not exceed $27.96 million, until such time as the 
principal component of the Letter of Credit is increased. 
Mr. Arnold explains that a Letter of Credit is like an 
insurance policy and guarantees that the Commercial 



1 Water Enterprise is the collective name for the PUC's projects to improve and expand the drinking 
water system and supply to 2.4 million customers in the Peninsula, South Bay and San Francisco. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

36 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

Paper buyers (also called investors) and tbe bank offering 
tbe Letter of Credit will be repaid. 

Approval of tbe subject resolution would also: 1) establish 
a maximum rate of interest for tbe Commercial Paper 
Notes and for tbe Bank Notes of 12 percent annually, 2) 
approve the issuance, sale and debvery of Commercial 
Paper Notes and Bank Notes, if any, and 3) authorize the 
Director of the Mayor's Office of Public Finance, City 
Attorney, and all other appropriate officers, employees, 
representatives and agents of the City to do everything 
. necessary or desirable to provide for the issuance of the 
Commercial Paper Notes. 

Comments: 1. Water Enterprise capital improvement projects 

totaling $72.5 million, to be funded by Water Revenue 
Bonds, were previously approved by the Board of 
Supervisors in the PUC's FY 1998-99 budget. Mr. Arnold 
reports that, if sold during the week of December 7, 1998, 
the interest rate on the aforementioned Water Revenue 
Bonds would range from approximately 5.0 to 5.2 percent. 
Mr. Arnold advises that if $72.5 million in Revenue Bonds 
were issued at 5.2 percent, the annual interest cost would 
be $3,842,500. 

According to Mr. Arnold, the issuance of the proposed 
Commercial Paper Notes would bear an interest rate in 
the range from approximately 2.9 percent to 3.1 percent, 
depending on the term length, or approximately 2 percent 
less than the interest rate on the long term Water 
Revenue Bonds. Mr. Arnold advises that the issuance of 
Commercial Paper at an interest rate of 3.1 percent to 
finance previously approved FY 1998-99 Water 
Department capital improvement projects to be funded 
by Water Revenue Bonds of $72.5 million would result in 
annual interest costs of $2,247,500, or $1,595,000 less per 
year than the interest cost of $3,842,500 for 30-year 
Revenue Bonds issued in the same principal amount at an 
interest rate of 5.2 percent. 

2. The subject commercial paper would be sold on an as- 
needed basis to provide cash to finance capital 
improvements prior to receipt of the proceeds from the 
sale of the above noted Revenue Bonds. Mr. Arnold 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

37 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



reports that through June 30, 1999, the PUC tentatively 
plans to sell approximately $30 million in Commercial 
Paper. The term and the interest rate of such Commercial 
Paper would be determined on the day of the sale, and 
would vary based on the PUC's cash needs and market 
conditions. Approval by the Board of Supervisors would 
not be required for each sale but, in accordance with File 
98-738 previously approved by the Board of Supervisors, 
the Director of Public Finance would approve each sale. 
The Board of Supervisors is being requested to approve 
this proposed resolution in order to authorize the PUC to 
issue up to $225 million in Commercial Paper Notes. 

3. Although this subject resolution would authorize the 
PUC to issue $225 million in Commercial Paper, the PUC 
intends to obtain a Letter of Credit with a maximum 
amount of $150 million. Mr. Arnold advises that the 
PUC's short term needs for cash to finance capital 
improvements to the Water Enterprise would not exceed 
$150 million at any one time during the first two years of 
the five year term of the Letter of Credit. In addition, the 
cost of a Letter of Credit is a function of the amount 
guaranteed therein. By obtaining a Letter of Credit with a 
limit of $150 million, or $75 million less than the $225 
million proposed for Commercial Paper debt, the 
estimated cost of the Letter of Credit would be $285,000. 
Therefore, the PUC would save approximately $112,500 
annually over the estimated cost of $397,500 for a Letter 
of Credit with a limit of $225 million. 

4. The PUC selected a team of underwriters for the 
Commercial Paper Notes, lead by Lehman Brothers, 
following a competitive bid, in May of 1998. In December 
of 1998, the PUC selected two banks to offer Letters of 
Credit following a Request for Proposals (RFP), 
Bayerische Landesbank Girozentrale and the State Street 
Bank and Trust Company. 

5. According to Mr. Arnold, in the unlikely event that 
there are no buyers for the PUC's Commercial Paper, the 
PUC's contract with the underwriter requires that the 
underwriter buy the Commercial Paper for up to a 30-day 
term. If at the end of the 30-day term there are still no 
buyers for the Commercial Paper, the bank issuing the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

38 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



PUC's Letter of Credit would repay the holders of the 
Commercial Paper, then the PUC's debt would be owed to 
the bank and the debt would be referred to as Bank 
Notes. 

6. According to Mr. Arnold, the PUC's commercial paper 
program would not be backed by General Fund revenues 
and would not create any exposure to the General Fund. 
Mr. Dave Sanchez of the City Attorney's Office concurs 
with Mr. Arnold. 

7. The ordinance outlining the procedures for the PUC's 
issuance of Commercial Paper, previously approved by the 
Board of Supervisors in June of 1998, limits the PUC's 
authorization to issue Commercial Paper to five years 
from the date of first issuance of Commercial Paper. 
According to Mr. Arnold, the PUC's Letter of Credit also 
has a five year term. As such, assuming no extensions or 
contract modifications, the PUC would have to sell the 
long term Water Revenue Bonds in order to pay back the 
Commercial Paper no later than at the end of the five 
year term of the Commercial Paper. 

8. According to Mr. Arnold, all financing documents were 
prepared with the assistance of the City Attorney, the 
Mayor's Office of Public Finance, the PUC's bond counsel, 
and the PUC's financial advisor. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

39 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

Items 9 and 10 - Files 98-2010 and 98-2011 



Department: 
Items: 



Amount: 
Source of Funds: 
Budget: 



Public Transportation Department (Muni) 

File 98-2010: Supplemental Appropriation Ordinance in 
the amount of $16,105,000 to: (a) fund the cost of the 
Muni Metro Recovery Contract; (b) implement various 
improvements throughout the Muni system; (c) address 
the projected revenue shortfall in Muni Fare Revenues; 
(d) supplement the increased cost of the use of Muni Fast 
Passes on BART; and (e) provide funding for free Muni 
service on New Year's Eve. The proposed supplemental 
appropriation would also create 22 new positions (18.0 
FTEs in FY 1998-99) and delete 14 positions. 

File 98-2011: Ordinance amending the FY 1998-99 
Annual Salary Ordinance to reflect the creation of 22 new 
positions (18.0 FTEs in FY 1998-99) and the deletion of 14 
positions. 

$16,105,000 

General Fund Reserve ' 

The requested budget appropriations, retroactive to 
December 2, 1998 through June 30, 1999 (see Comment 
No. 3), are detailed in the table below: 



Description Amount 

Muni Metro Recovery Contract 

Other Professional Services: 
Booz Allen Hamilton Contract 

Required Muni Expenditures in Connection 
With Booz Allen Contract for FY 1998-99 

Other Professional Services: 
Breda LRV Technicians $538,461 

Alcatel ATCS Technicians 269.231 

Subtotal - Professional Services $807,692 

Rail Vehicle Supplies: 

Alcatel ATCS Parts & Engineering Support $700,000 

Boeing LRV Parts 538.308 

Subtotal - Rail Vehicle Supplies $1,238,308 



$2,630,000 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

40 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



Total - Required Muni Expenditures in Connection 



with Booz Allen Contract for FY 1998-99 


$2,046,000 


Other Muni Improvements 




Reduction in Budgeted Attrition Savings: 




Permanent Salaries 


$1,074,130 


Fringe Benefits 


90.870 


Subtotal - Reduced Attrition Savings 


$1,165,000 


New Operating Positions (8): 




Permanent Salaries 


$243,355 


Fringe Benefits 


20.645 


Subtotal - New Operating Positions 


$264,000 


Other Professional Services: 




Civil Service Examinations 


$300,000 


Materials and Supplies: 





Materials & Supplies Shortfall $2,200,000 

Vehicle Parts & Supplies - Bus Engines 2,000.000 

Subtotal - Materials & Supplies $4,200,000 

Total - Other Mum Improvements $5,929,000 

Muni Fare Revenue & BART Payment 

Muni Passenger Fares* $3,600,000 

Payment to BART - Use of Fast Pass 1.900.000 

Total - Muni Passenger Fares/BART Payment $5,500,000 



Total Requested Funds $16,105,000 

* Includes $67,000 to provide funding for free Muni service on New 
Year's Eve. 

Description: The proposed supplemental appropriation ordinance (File 

98-2010) would appropriate $16,105,000 from the General 
Fund Reserve to (a) fund the Muni Metro Recovery 
Contract; (b) fund various improvements throughout the 
Muni system; (c) address the projected deficit in 
passenger fare revenues; and (d) pay BART for the 
increased usage of Muni Fast Passes on BART. 

The proposed ordinance (File 98-2011) would amend the 
Annual Salary Ordinance to reflect the creation of 22 new- 
positions (18.0 FTE in FY 1998-99) and the deletion of 14 
positions, as follows: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

41 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



No. of 
Positions 


FY 
98-99 
FTE 


Class 


Title 


Step 1 
Biweekly/ 
Annual 


Step 5 
Biweekly/ 
Annual 


Positions Created 
2 1.0 


9131 


Station Agent 


$1,698/ 
44,318 


$2,06*3/ 
53,844 


6 


3.0 


9139 


Transit Supervisor 


1,881/ 
49,094 


2,287/ 
59,691 


14 
22 


14.0 
18.0 


9150 
Subtotal 


Train Controller 


2,178/ 
56,846 


2,647/ 
69,087 


Positions D 

(14) 


dieted 

(14.0) 


9140 


Transit Manager I 


2,178/ 
56,846 


2,647/ 
69,087 



4.0 Total 

The annual cost of the net request of eight additional 
positions would range from $471,336 at Step 1, including 
salaries of $383,200 and fringe benefits of $88,136, to 
$572,976 at Step 5, including salaries of $465,834 and 
fringe benefits of $107,142. 



MUNI Metro Recovery Contract ($2,630,000) 

On November 10, 1998 the Public Transportation 
Commission awarded a consulting contract to the firm of 
Booz Allen & Hamilton (Booz Allen) to manage the MUNI 
Metro Recovery Project. According to Ms. Nancy Whelan, 
Finance Director for Muni, recent service on the Muni 
Metro system has been poor. Service delays and line 
failures have plagued the system as Muni has introduced 
new technology, such as the Advanced Train Control 
System (ATCS) 1 , and has placed the new Breda Light Rail 
Vehicles (LRVs) into service while the older, problematic 
Boeing LRVs are still in use. According to Ms. Whelan, 
difficulty in adapting to significant changes in the Metro 
system and the resulting service problems led 
management to seek the assistance of an outside 



1 The Advanced Tram Control System (ATCS) provides automated control of normal LRV train 
operations (e.g., acceleration, deceleration), station stops, and door operations in the subway. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

42 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



management consultant to serve under contract to Muni. 
Ms. Whelan advises that this Muni Metro Recovery 
contract relates only to LRV operations. According to Ms. 
Whelan, the contract is referred to as the Muni Metro 
Recovery contract because of the high priority placed on 
improving the Metro system after the significant system 
delays experienced in August when the new ATCS system 
was installed. 

The term of the contract is for the 13-month period from 
December 2, 1998 through December 31, 1999. The base 
contract amount is $4,440,909. In addition, the 
consultant is entitled to an additional incentive payment 
of 10 percent of actual costs incurred (or a maximum of 
$409,901, as specified in the contract), if certain service 
improvement goals are achieved. In the event that the 
consultant sustains the service improvement goals until 
the end of the agreement (December 31, 1999), the 
consultant is entitled to an incentive fee of 20 percent 
rather than 10 percent of base contract costs. Thus, the 
maximum incentive payment that the consultant may 
receive is $888,182 (20 percent of $4,440,909), resulting in 
a total maximum contract cost of $5,329,091. 

This supplemental appropriation request would pay for 
the FY 1998-99 base contract costs for the seven-month 
period from December 2, 1998 through June 30, 1998, or 
approximately $2,391,259, plus an incentive payment of 
up to 10 percent or $239,126, for a total amount of 
$2,630,385. Muni is requesting $2,630,000, or $385 less 
than this amount. Muni advises that the balance of 
$2,699,091 ($5,329,091 less the subject request for this 
contract of $2,630,000) will be included in Muni's FY 
1999-2000 budget request. The main provisions of the 
contract are described below. 

Project Scope & Methodology- 

The consultant's approach consists of the following 10 
initiatives in order to improve passenger service on Muni: 

> Establish a Muni Action Team, consisting of eight 
members: three representing Muni (from capital 
projects, maintenance, and operations), three 
representing the consultant, one representing Breda 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

43 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



and one representing Alcatel. The Action Team would 
act as Muni's focal point and would be responsible for 
the overall schedule and interim milestones for service 
improvement. The consultant would support the 
Action Team by identifying and quantifying key 
performance standards, providing technical assistance, 
and assisting Muni in institutionalizing changes. 

> Provide additional training for Muni operating 
personnel, focusing immediately on proper ATCS entry 
procedures, improved radio communications protocols, 
and potential responses to ATCS failures. Guidelines 
to reduce passenger wait times resulting from missed 
runs would be provided to inspectors. Additional 
training would be provided for operating and 
maintaining both Breda and Boeing LRVs. 

> Simulate operations incidents in order to develop more 
effective failure management strategies for ATCS 
central control operators. The consultant would (a) 
assist Muni in critiquing actions taken during service 
delays; (b) work with Muni personnel to determine 
more efficient methods of recovering service and 
minimizing service disruptions; (c) rehearse failure 
management techniques for the most common types of 
service delays; and (d) conduct live exercises of failures 
during off-peak or non-revenue periods. 

> Provide performance information to the public on a 
regular basis, e.g., by informing passengers of train 
locations, expected waiting and trip times for each 
route, system problems, and alternative forms of 
transportation. This additional information would be 
provided either through the existing platform display 
system or over the public address (PA) system. 

> Improve internal communications by (a) installing 
video display terminals at various stations for Muni 
operations personnel; (b) distributing performance 
data to senior management on a daily basis; and (c) 
recommending upgrades to the existing radio system 
and central control facilities. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

44 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



> Conduct service planning by developing an operations 
plan and train schedule, conducting an 
origin/destination study, and conducting a customer 
satisfaction survey. 

> Enhance the availability of Breda LRVs by attempting 
to establish maintenance standards and uniform 
maintenance procedures in order to reduce 
maintenance costs and service delays for Breda LRVs. 
Additional Breda technicians would be involved in the 
implementation of this initiative. 

> Implement a Boeing LRV emergency retrofit campaign 
in order to improve the service reliability of Boeing 
LRVs until replacement Breda LRVs are fully 
operational. The consultant would (a) complete a 
diagnosis of crucial Boeing LRV problems; (b) 
determine the number of Boeing LRVs to be retrofitted 
and prepare retrofit specifications; <c) negotiate costs, 
reliability improvement goals, and other terms of the 
retrofit program with the manufacturer; (d) issue a 
notice-to-proceed; and (e) provide inspection and test 
services. 

> Work with Alcatel, the manufacturer of ATCS, to 
improve the ATCS system by (a) resolving existing 
operational reliability and safety concerns (e.g., 
expediting vehicle repairs, solving portal entry 
problems, etc.); (b) adequately testing the remaining 
ATCS software prior to its introduction; and (c) 
providing assessment reports of Alcatel computer 
problems. Additional Alcatel technicians would be 
involved in the implementation of this initiative. 

> Implement other initiatives, such as forming driver 
and maintenance teams dedicated to a subset of LRV 
cars, and reducing maintenance yard congestion. 

Performance Goals 

The consultant's progress in implementing the service 
improvement program would be tracked against four 
measures: (1) the increase in the operational fleet that 
can be sustained throughout each day; (2) a reduction in 
the frequency of fine failures that result in significant 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

45 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



delays; (3) a reduction in the average system delay for 
each line failure; and (4) an increase in on-time 
performance. The interim milestones for LRV service are 
shown in the table below: 



Performance 
Measure 


Recent 
Performance 


Goals' 3 ' 


March 3. 1999 


Mav 1. 1999 


August 31. 1999 


Daily Fleet In Service 
(Number of Vehicles) 


72(b) 


80 


85 


95 


Line Failures 
Per Month 


To be 

quantified' 1 ' 


20 percent 
improvement 


40 percent 
improvement 


60 percent 
improvement 


Average System Delay 
Per Line Failure 


Approx. 40 
minutes" 1 ' 


30 minutes 


20 minutes 


10 minutes 


Headway management, 
On-time Performance 


To be 

quantified' ' 


70 percent 
on time 


80 percent 
on time 


90 percent 
on time 



Notes: 

<a) Successful completion of goals will be based on a 14-consecutive-calendar-day rolling 

average, within the 30-day period commencing on the milestone date. 
M According to Muni, these measures were proposed by Booz Allen and agreed to by Muni. 

Muni does not have historical records for these measures. 
< c) Recent performance must be determined within 30 days of notice-to-proceed (by January 2, 

1998), and is to be based upon a quantification of performance between September 3, 1998 

and October 3, 1998. 

The consultant is entitled to an incentive fee of 10 percent 
of actual costs incurred between the commencement date 
of December 2, 1998 and the first milestone date of March 
3, 1999, if all of the service improvements for that 
milestone date are achieved, as determined by the Muni 
Action Team. In addition, if the consultant achieves all of 
the service improvements for each of the successive 
milestone dates of May 1, 1999 and August 31, 1999, the 
consultant is entitled to an additional 10 percent of 
incremental costs incurred during those milestone 
periods. Cumulative incentive payments cannot exceed 
$409,901 under this provision. Additionally, as noted 
above, if the consultant sustains the above service 
improvements through December 31, 1999, the consultant 
is entitled to an incentive fee of 20 percent rather than 10 
percent of costs, up to a maximum of $888,182. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

46 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



However, the contract further provides that, if Muni does 
not substantially satisfy its responsibilities, as specified 
under Muni's Responsibilities below, and implement 
the consultant's recommendations that are considered 
feasible, the consultant would still be entitled to a 10 
percent incentive fee for the applicable milestone period, 
even if none of the goals are achieved and there is no 
improvement in Muni service whatsoever. The contract 
further states that the City's sole and exclusive remedy 
for the consultant's failure to achieve the service 
improvement goals is the non-payment of any incentive 
fee. 

Muni's Responsibilities 

In addition to paying Booz Allen $5,329,091 for the 
consulting contract, Muni is required under the proposed 
Booz Allen contract to provide additional funding of at 
least $5.4 million over the 13-month period of the contract 
for the items below: 



Description 


Amount 


Provisions for Muni personnel to conduct activities 
such as failure management drills, special tests, 
and additional training. 


To be 
determined 


Breda LRV repair services for existing wrecks and 
contingencies for future damage 


$1,000,000 


Breda LRV Parts and Additional Services 


600,000 


Breda LRV Technicians 


1,000.000 


Alcatel ATCS Technicians 


500,000 


Alcatel ATCS Parts and Engineering Support 


1,300,000 


Boeing LRV Parts 


1.000.000 


Total 


$5,400,000 



Muni advises that $1.6 million is available from 
previously appropriated Proposition B Sales Tax funds for 
Breda LRV repair services ($1,000,000) and Breda LRV 
parts ($600,000) through December 31, 1999. Of the $3.8 
million balance, this supplemental appropriation request 
would appropriate $2,046,000 to cover the seven-month 
period from December 2, 1998 through June 30, 1999 for 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

47 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



the remaining four items listed in the table above, which 
are discussed in further detail below under Required 
Muni Expenditures in Connection with Booz Allen 
Contract for FY 1998-99 . Muni advises that it will 
include the remaining $1,754,000 ($3,800,000 less 
$2,046,000) for the six-month period from July 1, 1999 
through December 31, 1999 in its FY 1999-2000 budget 
request. 

Muni's other responsibilities with regard to the consulting 
contract include establishing purchasing agreements with 
Alcatel and Breda and providing the necessary key and 
support personnel for the Action Team. 

Other Contract Provisions 

> Muni may submit task orders to the consultant to 
perform additional services that are beyond the scope 
of the existing contract, subject to the certification of 
the availability of adequate funds by the Controller. 
Therefore, it is unknown at this time how much in 
additional City funds would be paid to Booz Allen over 
and above this subject contract, which provides 
payments to Booz Allen of up to $5,329,091. 

> The City may terminate the contract for the City's 
convenience and without cause at any time by 
providing 15 days written notice. 

> The consultant's hourly billing rates range from $79.34 
to $224.76 per hour. 



Required Muni Expenditures in Connection 
with Booz Allen Contract for FY 1998-99 
($2,046,000) 

As noted above, in addition to paying Booz Allen up to 
$5,329,091 for the consulting contract, MUNI is required 
under the contract to make additional expenditures of at 
least $5.4 million over the 13-month period of the 
contract. Of this amount, this supplemental appropriation 
request would provide $2,046,000 to fund the following 
items for the seven-month period from December 2, 1998 
through June 30, 1999: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

48 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



Breda LRV Technicians $538.461 

Muni will accept service delivery of the last 25 of 77 
Breda LRVs ordered in 1991 by March, 1999. Muni's 
existing contract with Breda provides maintenance and 
operating manuals and basic training for Muni operating 
and maintenance staff. Additionally, four Breda 
technicians are provided on site to troubleshoot 
malfunctioning vehicles. However, according to Ms. 
Whelan the level of technical support and related training 
provided under this contract is insufficient to sustain 
daily vehicle demands, resulting in vehicles that are "on 
hold" due to the lack of parts or technicians to 
troubleshoot problems. This request would provide 
funding for additional troubleshooting and extensive 
training for Muni personnel by Breda technicians in order 
to help ensure that daily vehicle needs are met. Muni 
advises that such services were not included in the 
original contract with Breda. 

Alcatel ATCS Technicians $269.231 

Muni's current contract with Alcatel provides three 
technicians to support Muni with diagnosing and, when 
possible, repairing computer problems related to ATCS. 
Additionally, the Alcatel technicians perform acceptance 
testing of new vehicles and provide engineering support 
for Alcatel troubleshooting exercises. As with the existing 
Breda contract, the level of technical support in the 
current contract with Alcatel is inadequate to ensure that 
peak vehicles demands are met. This request would 
provide funding for additional Alcatel technical experts to 
expedite troubleshooting and failure recovery and provide 
extensive training to Muni personnel. Muni advises that 
such services were not included in the original contract 
with Alcatel. 

Alcatel ATCS Parts and Engineering Support $700.000 
This would fund (a) a blanket purchase order for Alcatel 
parts through June 30, 1999; and (b) Alcatel engineering 
support to address hardware and software problems 
related specifically to portal entry by Metro trains. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

49 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



Boeing LRV Parts $538.308 

This would provide funding through June 30, 1999 for 
Light Rail Vehicle supplies to repair Boeing LRVs under 
the consultant's Boeing Emergency Retrofit Campaign. 



Other Muni Improvements ($5,929,000) 

Muni is requesting $5,929,000 in order to fund the 
following initiatives designed to improve Muni service: 

Reduction in Budgeted Attrition Savings $1.165.000 

The Controller's salary and fringe benefit expenditure/ 
projection report for the pay period ending October 16, 
1998, projects a surplus of approximately $7.5 million 
($2.3 million in salaries and $5.2 million in fringe 
benefits). However, according to Ms. Whelan, that 
calculation does not capture certain expenditures required 
during the remainder of FY 1998-99, as shown below: 

Controller's Projected Surplus in Salaries 

& Fringe Benefits as of 10/16/98 $7,508,000 

Less: 

Retiree Health Subsidy Payment (2,783,000) 

Health Service Administration Payment (459,000) 

Fill 100 Transit Operator vacancies (2,124,000) 

Fill 30 Transit Supervisor vacancies (1,207,000) 

Fill 63 vacant maintenance positions (1,300,000) 

Estimated Department-wide mid-year 

COLA (800.000) 
Projected Salary and Fringe Benefit 

Shortfall ($1,165,000) 

The proposed supplemental appropriation ordinance 
includes $1,074,130 for permanent salaries and $90,870 
for fringe benefits, for a total of $1,165,000, to fund 
Muni's projected shortfall in these categories for FY 1998- 
99, based on the anticipated additional expenditures 
shown above. 

Muni Operating Positions $264.000 

Muni is requesting two new 9131 Station Agent positions 
(1.0 FTE in FY 1998-99) to relay information between 
Muni's Central Control Unit and Station Agents located 
at each Metro station, who will then provide this 
information to passengers. Additionally, Muni is 

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BUDGET ANALYST 

50 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



requesting six new 9139 Transit Supervisor positions (3.0 
FTE in FY 1998-99), to be stationed at the entrances to 
critical portals in the Metro system so that they can 
effectively traffic the trains and therefore limit the 
number of non-communicating ACTS trains that enter the 
tunnels. Muni advises that the purpose of this request for 
six new positions is to address concerns of the National 
Transportation Safety Board. According to Muni, this 
measure will decrease the number of system shutdowns 
and maintain consistent Metro service. Budget details for 
this request are as follows, assuming a hiring date of 
January 8, 1999: 

9131 Station Agents: 

$1,871 biweekly x 12.3 pay periods 

x 2 positions $46,027 

9239 Transit Supervisors: 
$2,287 biweekly x 12.3 pay periods 

x 6 positions 168.781 

Subtotal - Permanent Salaries $2 1 4 ,808 

Fringe Benefits @ 23% 49.406 

Total $264,214 

The proposed supplemental appropriation ordinance 
includes $243,355 for permanent salaries and $20,645 for 
fringe benefits, for a total of $264,000, to pay for the eight 
requested new positions from January 8, 1999 through 
June 30, 1999. 

Muni further advises that, because of the demanding 
nature of work, employees in the 9140 Transit Manager I 
classification in Muni Metro's Central Control unit often 
transfer to other Muni divisions at their earliest 
opportunity. To address this issue, the Department of 
Human Resources (DHR) has created a new classification, 
the 9150 Train Controller, at the same annual rate of pay 
of $69,087 at Step 5 as the 9140 Transit Manager I 
classification, for Muni Central Control staff. According 
to Ms. Whelan, this will result in staff who are dedicated 
to Central Control operations, thereby causing less 
disruption. The proposed amendment to the FY 1998-99 
Annual Salary includes the addition of 14 Train 
Controller positions and the deletion of 14 Transit 
Manager I positions in the Central Control unit in order 
to reflect this new classification. 



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BUDGET ANALYST 

51 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



Civil Service Examinations £300.000 

Muni advises that, in the recent past, the results of the 
Transit Manager I and II examinations have been 
disputed and thrown out, resulting in a large number of 
provisional employees. 2 Muni is now requesting $300,000 
to contract with an outside consultant to conduct 
examinations for three classifications: Transit Manager I, 
Transit Manager II, and Train Controller. According to 
Ms. Whelan, contracting out the examination process will 
shift the responsibility and the cost of justifying and 
defending the examination results from the City to the 
contractor. In addition, the results of the examination 
process are less likely to be disputed if all interested 
parties perceive the process to be without bias, according 
to Ms. Whelan. This request of $300,000 would pay for 
three exams at a cost of $100,000 per exam, based on an 
estimate provided by Cooperative Personnel Services 
(CPS), an outside testing firm. Muni advises that the 
testing services would be competitively procured. 

Materials and Supplies Shortfall $2.200.000 

According to Ms. Whelan, there continues to be a 
structural deficit in the budget for materials and supplies. 
This shortfall is caused by long lead times for the delivery 
of certain parts and supplies, often requiring that items 
ordered in the fourth quarter of the current fiscal year be 
paid for in the next fiscal year using that fiscal year's 
appropriation, since an inadequate amount of 
encumbrances are carried forward. Muni's calculation of 
its projected shortfall in materials and supplies for FY 
1998-99 is as follows: 

FY 98-99 Budget - Materials & Supplies $16,770,000 
FY 97-98 Carry Forward 3.240.000 

Total Sources $20,010,000 

FY 1997-98 Actual Expenditures $16,721,331 

FY 1997-98 Encumbrance Balance 4,445,000 

Subtotal $21,166,331 

Inflation @ 5% x 1.05 

Projected FY 1998-99 Expenditures $22,224,647 

Projected Expenditure Shortfall ($2,214,647) 



2 Provisional employees are employees who are hired pending successful completion of the Civil 
Service Examination and therefore have not yet received permanent status. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

52 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



The proposed supplemental appropriation ordinance 
includes $2,200,000 to offset Muni's projected expenditure 
shortfall in Materials and Supplies. 

Vehicle Parts & Supplies - Bus Engines $2.000.000 

Muni is requesting $2,000,000 to purchase 25 M.A.N. 
engines ($55,000 per engine) and 25 transmissions 
($25,000 per transmission) for articulated diesel buses 
with engines that can no longer be repaired or rebuilt. 
According to Ms. Whelan, 80 M.A.N, diesel coaches were 
purchased in 1984 and exceeded their economic useful life 
in 1996. Many of these coaches have become difficult and 
costly to maintain. Muni advises that 20 of the 80 M A.N. 
coaches are already planned and funded for full 
rehabilitation, including engine replacements. While an 
order for new articulated diesel coaches will be placed 
soon, the new vehicles will not be delivered for 
approximately 2-1/2 years. Muni advises that this subject 
request to fund an engine replacement program will 
ensure that vehicle availability will be maintained or 
improved until the new articulated coaches arrive in 
approximately 2001. In addition, Ms. Whelan advises 
that Muni will also request additional funding of 
$1,375,000 for 25 more replacement engines in its FY 
1999-2000 budget. 



Muni Fare Revenue and BART Payment 
($5,500,000) 

Muni Passenger Fares S3.600.000 

Muni advises that passenger fare revenue in most 
categories, including Fast Passes, Youth Passes, cable car 
fares, and cash fares, are lower than during the same 
period last year and that the actual fare revenues are not 
meeting the budgeted revenue totals. Muni advises that 
this revenue decrease is primarily attributable to 
significant losses in service during the first weeks of 
ATCS implementation in August, 1998. According to Ms. 
Whelan, while revenue from July through October, 1998 
was an estimated $1.2 million or 3.6 percent lower than 
budgeted revenues for that period, actual revenue for 
November, 1998 indicates that a recovery is beginning. 
Muni anticipates an overall revenue shortfall of 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

53 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



$3,571,073 in passenger fares through June 30, 1999, or 
3.7 percent under budgeted revenues of $97,536,025 for 
FY 1998-99, consisting of shortfalls in cash fares 
($1,584,634), cable car fares ($699,097), Fast Passes 
($473,569), Youth Passes ($220,203) and various other 
fare revenues ($593,570). 

In addition, Muni is requesting $67,000 to fund the 
suspension of Muni fares on New Year's Eve between the 
hours of 8 p.m. and 3 a.m. in order to improve public 
safety and traffic conditions. An ordinance adopting the 
suspension of fares on New Year's Eve was recommended 
for approval by the Finance Committee at its Special 
Meeting of December 9, 1998. This $67,000 amount 
consists of $32,000 in fare losses based on past experience 
on New Year's Eve and $35,000 for additional Muni 
service on New Year's Eve. 

Due to rounding, the proposed ordinance includes 
$3,600,000 for passenger fares, or $38,073 less than 
Muni's projected need of $3,638,073. 

Payment to BART - Use of Fast Pass $1.900.000 

Muni pays BART $0.76 for each trip on which a Muni 
Fast Pass is used to ride BART within the City. In FY 
1997-98, Muni paid BART approximately $6.6 million for 
8.6 million trips. Muni's FY 1998-99 budget for Fast Pass 
usage on BART is $5,816,000. With the implementation 
of ATCS, Muni anticipated that more passengers would 
use Muni Metro rather than BART. However, actual 
billings from BART indicate that through October, 1998, 
there have been over 3.0 million trips, or a 17.6 percent 
increase over the same period last year, resulting in 
payments to BART of $2,287,067. Muni advises that the 
increased usage of Fast Pass on BART is due to the sharp 
decrease in Metro service during the ATCS 
implementation. While Muni anticipates that the use of 
the Fast Pass on BART will decline, this will not be 
sufficient to offset the losses through October, 1998. Muni 
estimates that a total of 10.2 million trips will be taken on 
BART in FY 1998-99, an 18.3 percent increase over FY 
1997-98. Payments to BART will be an estimated 
$7,746,146, or $1,930,146 more than budgeted 
expenditures of $5,816,000. Due to rounding, the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

54 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



Comments: 



proposed ordinance includes $1,900,000 for the payment 
to BART for Fast Pass usage, or $30,146 less than Muni's 
projected need of $1,930,146. 

Muni is currently in negotiations with BART concerning 
an adjustment to BARTs $0.76 per trip rate. According 
to Ms. Whelan, BARTs current rate of $0.76 per trip will 
remain in effect for the remainder of FY 1998-99, 
regardless of the outcome of the negotiations with BART. 

1. The contract with Booz Allen Hamilton has been 
reviewed and recommended by the Muni Management 
Council, a committee formed by the Mayor to address 
Muni's problems. The council consists of the Controller, 
the City Attorney, the Purchaser, the Director of Human 
Resources, and the -Executive Director of the 
Transportation Authority. 

2. The table below shows the Budget Analyst's total 
estimated costs for the Muni Metro Recovery Project and 
other Muni improvements: 









Total for 


On-going 




12/2/98 - 


7/1/99 - 


Contract 


Annual 




6/30/99<-> 


12/31/99 


Period' 11 


Expenditures 


Muni Metro Recovery Contract 


$2,630,000 


52,699,091 


S5. 329.091 


-- 


Contract-Related Expenditures: 










Breda LRV Services & Parts'" 


$861,538 


$738,462 


$1,600,000 


- 


Breda LRV Technicians 


538,461 


461.539 


1,000,000 


- 


Alcatel ATCS Technicians 


269,231 


230,769 


500.000 


- 


Alcatel ATCS Parts 


700,000 


600,000 


1.300,000 


- 


Boeing LRV Parts 


538.308 


461.692 


1.000.000 


.. 


Subtotal 


S2,907,538 


S2, 492,462 


$5,400,000 


- 


Other Muni Improvements: 










Reduced Attrition Savings 


SI, 165.000 


$1,800,000 


$2,965,000 


$3,600,000 


New Operating Positions 


264,000 


280,323 


544,323 


560.647 


Civil Service Examinations 


300,000 


-- 


300,000 


.. 


Materials & Supplies 


2.200,000 


1,100,000 


3,300,000 


2,200,000 


Vehicle Parts - Supplies 


2.000.000 


1.375.000 


3.375.000 


.. 



Subtotal 



TOTAL 



$5,929,000 S4. 555.323 $10,484,323 $6,360,647 
$11,466,538 $9,746,876 S21,213,414 $6,360,647 



Notes: 

(a) This column does not total to the subject request of $16, 105.000 because it 
includes $861,538 for Breda LRV services and parts, which will be funded bv 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

55 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

previously appropnated Proposition B Sales Tax funds, and excludes the revenue 

shortfall in Muni passenger fares (S3. 6 million) and the payment to BART (SI. 9 

million), totaling So. 5 million. 
*' Total for entire contract period (from December 2, 1998 through December 31, 

1999). 
(c) This item will be funded with previously appropriated Proposition B Sales Tax 

funds and is therefore not included in this supplemental appropriation request. 

As reflected in the table above, the total estimated cost of 
the Muni Recovery Project, which includes the Muni 
Metro Recovery contract with Booz Allen, Muni's contract- 
related expenditures, and other Muni service 
improvements, would be $21,213,414 over the 13-month 
term of the contract (through December 31, 1999). This 
supplemental appropriation request would fund 
$10,605,000 of this cost during FY 1998-99 (consisting of 
the FY 1998-99 total of $11,466,538 shown above less 
$861,538 for Breda LRV services and parts, which will be 
funded with previously appropriated Proposition B Sales 
Tax funds). The total costs just for the Muni Metro 
Recovery contract ($5,329,091) and other Muni 
expenditures in connection with the contract ($5,400,000) 
would be $10,729,091 over the term of the contract. The 
Budget Analyst estimates that Muni will have to include 
an additional $12,188,738 in its FY 1999-2000 budget 
request in order to fund Muni Recovery Project costs 
through June 30, 2000. Additionally, annual on-going 
costs for new positions, reduced attrition savings and 
materials and supplies would be an estimated $6,360,647. 

3. Muni issued a notice to proceed to Booz Allen 
Hamilton on December 2, 1998 prior to obtaining 
approval of the Board of Supervisors for the required 
funds. As such, expenditures are currently being incurred 
against the proposed supplemental appropriation 
ordinance. The proposed ordinance (File 98-2010) should 
therefore be amended to provide for ratification of actions 
previously taken. 

4. The contract with Booz Allen Hamilton was executed 
by Muni on a sole source basis. According to Ms. Whelan. 
Booz Allen Hamilton is uniquely qualified to develop 
management solutions and provide support services that 
will result in critical improvements to the Muni Metro 
system and that Booz Allen has extensive experience in 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

56 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



prior and current contracts with Muni. Unlike Muni's 
previous contracts with Booz Allen Hamilton, the current 
contract with Booz Allen in the amount of $5,329,091 is 
for the provision of management consulting services, not 
engineering services. Ms. Whelan further advises that, in 
addition to Booz Allen Hamilton's extensive knowledge 
and understanding of Muni's system through its 
experience with Muni's ATCS and Breda LRV 
procurements, Booz Allen Hamilton has provided 
management and engineering consulting services to 
similar rail transit systems throughout the world, 
including London, Hong Kong, and Boston. Moreover, 
Ms. Whelan advises that retaining Booz Allen Hamilton 
for this contract will result in no time wasted in learning 
the maintenance issues, technology, and service 
parameters of the Metro system. Muni advises that this 
sole source contract was approved by the Human Rights 
Commission and the Civil Service Commission. 

5. Although Muni advises that it has had several 
contracts with Booz Allen Hamilton to perform 
engineering design and inspection services since 1989, as 
of the writing of this report, Muni was unable to provide 
the precise number of contracts. Of these contracts, there 
have been four related to the Muni Metro, under which 
Booz Allen has provided engineering consulting services 
on the ATCS and LRV Replacement Program. Muni 
advises that these contracts were awarded on a 
competitive basis. The table below shows the contract 
amounts and actual expenditures for these four contracts. 

Actual 

Start Completion Contract Expenditures 
Description Date Date Amount To Date 

ATCS Project I 1/31/89 1/31/98 $8,811,425 58.811,425 

LRV 2 Replacement Project 4/1/89 5/30/97 8,985,230 8,985.230 

LRV 3 Replacement Project 10/10/97 10/10/02 6.354,821 4.368.730 

ATCS Project II 1/29/98 1/29/01 4.000.000 1. 415^486 

Total S24. 151,476 S23. 580.871 

6. Between August 1, 1998 and December 10, 1998, Muni 
accepted delivery of 16 new Breda LRV vehicles. Seven 
more Breda vehicles are expected to be accepted between 
December 17, 1998 and February 11. 1999, for a total 23 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

57 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



new Breda LRVs that will be placed into service between 
August, 1998 and March, 1999. In addition, Muni has 
placed an order for 59 more Breda LRVs, which are 
expected to be delivered starting in November, 1999, to be 
completed by August, 2001. Further, Muni's FY 1998-99 
"no excuses" budget was approved by the Board of 
Supervisors in the amount recommended by the Mayor 
totaling $333,145,441, or $26,881,217 more than the 
$306,264,224 budget approved for Muni in FY 1997-98. 

In the professional judgment of the Budget Analyst, even 
without the proposed contract with Booz Allen, Muni 
service should improve in any event as a result of the on- 
going delivery of 82 new LRVs, as Muni becomes more 
proficient with the new Advanced Train Control System 
(ATCS), and as the planned new hiring under Muni's "no 
excuses" budget is executed. On the other hand, there is 
no guarantee of improved service on Muni under the 
proposed contract with Booz Allen, there are no penalties 
if Booz Allen fails to meet the performance goals, and, if it 
is found that Muni has failed to meet its financial and 
other responsibilities under the contract, the City must 
still pay Booz Allen the incentive fee -of up to $888,182, 
even if there is no improvement whatsoever in Muni 
service. The Budget Analyst further notes that the service 
improvements included in the contract, including the 
number of 72 used as the daily number of LRVs in 
service, were proposed by Booz Allen and agreed to by 
Muni, and that Muni does not have historical records for 
these measures. 

The Budget Analyst questions whether the proposed 
contract with Booz Allen has been fully justified, and 
whether Muni management is not itself capable of 
making the necessary improvements using existing 
resources as well as the additional funds totaling 
$10,605,000 which have been allocated for other 
initiatives in this subject supplemental appropriation 
request. 

7. The Budget Analyst recommends the following 
reductions to the proposed supplemental appropriation 
ordinance (File 98-2010): 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

58 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



> Muni based its FY 1998-99 expenditure projection for 
materials and supplies on its FY 1997-98 actual 
expenditures, plus inflation of 5.0 percent. The 
Budget Analyst believes that an inflation rate of 3.0 
percent is more realistic, given the current economic 
climate. As such, the Budget Analyst recommends a 
reduction in materials and supplies of $414,000, from 
$2,200,000 to $1,786,000, based on Muni's FY 1997-98 
actual expenditures, plus 3.0 percent inflation. 

> During the annual budget process, the Board of 
Supervisors approved 28 new 9139 Transit Supervisor 
positions in Muni's FY 1998-99 budget to conduct 
additional training classes for 9163 Transit Operators, 
and thereby address the staff shortages in that class. 
This supplemental request includes funding to fill 30 
vacancies in the 9139 Transit Supervisor class. 
Nevertheless, since June, 1998, Muni has been able to 
reduce the number of vacant 9163 Transit Operator 
positions from 220 to 100, without the assistance of the 
30 new Transit Supervisor positions approved in the 
FY 1998-99 budget. As such, the Budget Analyst 
recommends that Muni use some of the existing 
vacancies in the Transit Supervisor class to perform 
the needed functions for which Muni is currently 
requesting six new Transit Supervisor positions, and is 
recommending against the approval of these six new 
positions. The subject request should therefore be 
reduced by $207,600 (based on $2,813 salary and 
fringe benefits per pay period x 12.3 pay periods x six 
positions). Muni responds that the purpose of this 
request for six new positions is to address concerns of 
the National Transportation Safety Board. 

> The request of $1,165,000 for a reduction in budgeted 
attrition savings should be reduced by $448,592 to 
$716,408 in order to (a) reflect attrition among the 
remaining 100 Transit Operator positions to be filled; 
and (c) reduce the salary for the remaining vacant 
Transit Operator positions from Step 5 to Step 3. 

> Muni receives most of the parking fine revenues and a 
portion of the parking garage revenues generated by 
the Department of Parking and Traffic (DPT). 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

59 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

According to Ms. Kathryn Hile of DPT, DPT is 
currently projecting a surplus of approximately 
$713,586 in General Fund garage revenues and a 
shortfall of approximately $313,175 in parking fine 
revenues for FY 1998-99, for a net surplus of $400,411. 
Muni's projected shortfall of $3,571,073 in passenger 
fare revenues should be partially offset by this surplus. 
Thus, Muni's request of $3,600,000 for passenger fare 
revenues should be reduced by $400,411 to $3,199,589. 

> This request includes $807,692 for two professional 
services contracts with Breda LRV Technicians 
($538,461) and Alcatel ACTS Technicians ($269,231) 
for the seven-month period from December 2, 1998 
through June 30, 1999. According to Ms. Whelan, 
these contracts most likely will not commence until 
approximately December 17, 1998. Therefore, the 
subject request for these two contracts should be 
reduced by $57,692, from $807,692 to $750,000, to 
reflect the 6-1/2 month period from December 17, 1998 
through June 30, 1999. 

The Budget Analyst's total recommended reductions are 
$1,528,295, from $16,105,000 to $14,576,705. 

Summary: The contract with Booz Allen Hamilton was executed by 

Muni on a sole source basis. Muni issued a notice to 
proceed to Booz Allen Hamilton on December 2, 1998, 
prior to obtaining approval of the Board of Supervisors for 
the required funds. Under the proposed contract with 
Booz Allen Hamilton, the City would pay Booz Allen up to 
$5,329,091 to assist Muni in improving the Muni Metro 
system. However, under the contract with Booz Allen, it is 
unknown at this time how much in additional City funds 
would be paid to Booz Allen over and above the proposed 
contract amount of up to $5,329,091, since the contract 
states that Muni may submit task orders to Booz Allen to 
perform additional services. 

This supplemental appropriation request would provide 
$2,630,000 in order to fund the FY 1998-99 portion of this 
contract. In addition to paying Booz Allen up to 
$5,329,091, Muni is required under the proposed contract 
to provide additional funding of at least $5.4 million over 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

60 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



the contract's 13-month period, of which $2,046,000 is 
included in the subject supplemental appropriation 
request. Overall, the Booz Allen contract and its related 
Muni expenditures will cost the City $10,729,091 through 
December 31, 1999. In addition, other Muni service 
improvements included in this supplemental request will 
cost $5,929,000 in FY 1998-99. The total estimated cost of 
the Muni Recovery Project, including the Muni Metro 
Recovery contract, contract-related expenditures, and 
other Muni service improvements, would be $21,213,414 
over the 13-month term of the contract. The Budget 
Analyst estimates that Muni will have to include an 
additional $12,188,738 in its FY 1999-2000 budget 
request in order to fund Muni Recovery Project costs 
through June 30, 2000. Additionally, annual on-going 
costs after FY 1999-2000 would be an estimated 
$6,360,647. 

The contract with Booz Allen includes incentive payments 
of up to $888,182, based on the consultant's ability to 
achieve certain service improvement goals. However, if 
Muni does not satisfy its financial responsibilities under 
the contract and implement the consultant's 
recommendations that are considered feasible, Muni is 
still required under the terms of the contract to pay Booz 
Allen incentive payments, even if none of the goals are 
achieved and there is no improvement whatsoever in 
Muni service. The contract further states that the City's 
sole and exclusive remedy for the failure on the part of 
Booz Allen to achieve the service improvement goals is 
the non-payment of any incentive fee. However, Booz 
Allen would still receive the base contract payment of 
$4,440,909. There is no guarantee of improved service on 
Muni and there are no penalties if Booz Allen fails to 
meet the performance goals under the proposed contract. 
The Budget Analyst further notes that (a) the service 
improvements included in the contract, including the 
number of 72 used as the daily number of LRYs in 
service, were proposed by Booz Allen and agreed to by 
Muni, and (b) Muni does not have historical records for 
these measures. Moreover, Muni does not maintain 
readily available data on other performance measures 
included in the contract, such as line failures per month 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

61 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

and headway management/on-time performance, which 
are yet to be quantified. 

Although Muni advises that it has had several contracts 
with Booz Allen Hamilton to perform engineering design 
and inspection services since 1989, as of the writing of 
this report, Muni was unable to provide the precise 
number of contracts. The City has made payments to 
Booz Allen Hamilton totaling $23,580,871 since 1989 for 
four such contracts. Meanwhile, Muni service has 
deteriorated. Although many factors contributed to this 
deterioration, the fact remains that service has not 
improved under Muni's past experience with Booz Allen. 
Even without the proposed contract with Booz Allen, 
Muni service should improve in any event as a result of 
the on-going delivery of 82 new LRVs between August, 
1998 and August, 2001, as Muni becomes more proficient 
with the new Advanced Train Control System (ATCS), 
and as the planned new hiring under Muni's "no excuses" 
budget is executed. The Budget Analyst therefore 
questions whether the proposed contract with Booz Allen 
has been fully justified, and whether Muni management 
is not itself capable of making the necessary 
improvements using existing resources as well as the 
additional funds totaling $10,605,000 which have been 
allocated for other initiatives in this supplemental 
appropriation request. 

In response, the Mayor's Office advises that a primary 
justification for the contract with Booz Allen is to better 
manage the limited resources available for improving 
Muni service. 

Recommendations: 1. Amend the proposed supplemental appropriation 

ordinance (File 98-2010) in order to provide for 
ratification of actions previously taken, in accordance 
with Comment No. 2. 

2. The proposed contract with Booz Allen Hamilton 
should be amended to (a) prohibit any incentive payments 
to Booz Allen Hamilton unless the service improvement 
goals contained in the contract are achieved, and/or (b) 
provide for financial penalties against Booz Allen if Booz 
Allen fails to meet the stated service improvement goals. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

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Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



3. Amend the proposed supplemental appropriation 
ordinance (File 98-2010) by reducing the amount by 
$1,528,295, from $16,105,000 to $14,576,705, in 
accordance with Comment No. 7, as reflected in the table 
below: 



Budget Analyst's Budget Analyst's 
Requested Recommended Recommended 
Amount Amount Reduction 



Finance/Admin./Personnel: 








Transit Cash Fares 


$3,600,000 


$3,199,589 


$400,411 


Other Professional Services 


2,630,000 


2,630,000 





Other Professional Services 


300,000 


300,000 





Payment to Other Government 


1.900.000 


1.900.000 





Subtotal - Finance/Admin./ 








Personnel 


$8,430,000 


$8,029,589 


$400,411 


Muni Maintenance: 








Permanent Salaries 


$243,355 


$51,989 


$191,366 


Fringe Benefits 


20,645 


4,411 


16,234 


Other Professional Services 


807,692 


750,000 


57,692 


Rail Vehicle Supplies 


3.438.308 


3,024,308 


414.000 


Subtotal - Muni Maintenance 


$4,510,000 


$3,830,708 


$679,292 


Muni Transit Operations: 








Permanent Salaries 


SI, 074.130 


$660,528 


$413,602 


Fringe Benefits 


90,870 


55,880 


34,990 


Vehicle Parts - Supplies 


2.000.000 
$3J.65,000 


2.000.000 

, $2,716,408 





Subtotal — Muni Operations 


$448,592 


Total 


$16,105,000 


S14, 576,705 


$1,528,295 



4. Amend the proposed ordinance (File 98-2011) to delete 
the requested six (3.0 FTE in FY 1998-99) new 9139 
Transit Supervisor positions. 

5. Approval of the proposed supplemental appropriation 
ordinance (File 98-2010) and the proposed ordinance (File 
98-2011), as amended, is a policy matter for the Board of 
Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

63 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



Item 11 -File 98-2047 

Department: 

Item: 



Description: 



Department of Public Works (DPW) 

Ordinance approving the Pedestal-Mounted Newsrack 
Agreement by and between the City and County of San 
Francisco and Adshel, Inc., which allows for the provision, 
installation and maintenance of pedestal mounted 
newsracks on public property; approving an 
indemnification of the contractor by the City for all claims 
initiated by a publisher holding a permit for a newsrack 
box or other publisher concerning the newsracks, their 
operation or the Agreement with Adshel, Inc., and 
authorizing the Director of the Department of Public 
Works to make changes to the Department of Public 
Works Director's orders incorporated by references in the 
Agreement with Adshel, Inc. 

In June of 1998, the Board of Supervisors approved an 
ordinance (File 98-515) which added a new Section 184.12 
regulating the placement and maintenance of newsracks 
on public streets, sidewalks and rights-of-way to prohibit 
free-standing newsracks in specified areas of the City 
referred to as Fixed Pedestal Newsrack Zones, and 
establishing an annual Fixed Pedestal Newsrack permit 
and permit fee to be paid by publishers. 

The subject ordinance would approve an Agreement 
between the City and the Contractor, Adshel, Inc., 
requiring the provision, installation and maintenance by 
Adshel, Inc. of up to 1,000 fixed pedestal newsracks at no 
cost to the City, in exchange for the right by Adshel, Inc. 
to place and sell advertising on the back side of 450 such 
newsracks to be located in the Downtown Area (see 
Comment No. 2). The proposed Agreement would have a 
term of 20 years from the start date, which is defined in 
the Agreement as the date when all required permits and 
approvals have been issued for the 450 fixed pedestal 
newsracks containing advertising panels. 

Under the proposed Agreement, Adshel, Inc. must 
provide, install and maintain up to 1,000 fixed pedestal 
newsracks at no cost to the City. According to Ms. Angela 
Karikas of the City Attorney's Office, the sole obligation of 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

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Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



the City is that the City must grant Adshel, Inc. the 
exclusive right to place and offer for sale advertising on 
450 fixed pedestal units in the Downtown Area. The City 
would not be obligated to make any monetary payments 
to Adshel, Inc. except and to the extent the City exercises 
its option to purchase the fixed pedestal newsracks at fair 
market value, 1 which becomes an option in the 19 th year 
of the contract. According to Mr. Dan Brugman of DPW, 
the reason the City might want to purchase the fixed 
pedestal newsracks is that the City may want to continue 
the Fixed Pedestal Newsrack Program beyond the term of 
the Agreement with Adshel, Inc. 

Under the proposed Agreement, Adshel, Inc. must make 
the following payments to the City: (1) a one time fee of 
$1,000 for each of 11 Fixed Pedestal Zone permits (which 
are based on the 11 Board of Supervisors Districts as 
approved by the voters under a Charter amendment in 
November of 1996 to become effective in the first general 
election of the year 2000), or $11,000, and (2) a one time 
fee of $10 for each of the 1,000 fixed pedestal newsracks 
to be installed, or approximately $10,000, for a total 
estimated one time payment of $21,000. 

Additionally, the proposed agreement with Adshel, Inc. 
would require Adshel, Inc. to pay the City an annual 
Percentage Advertising Fee, beginning the calendar year 
following the fifth anniversary of the installation of up to 
1,000 fixed pedestal newsracks. The Fee, which is 
calculated according to a formula described in Section 
1.11 of the proposed contract, is summarized as follows: 
the Newsrack Advertising Fee minus Accumulated 
Credits where the Newsrack Advertising Fee is defined 
as 5 percent of gross revenues over $2 million annually, 
and Accumulated Credits are defined as those costs borne 
by Adshel resulting from City actions such as City- 
initiated relocations of newsracks, loss of advertising 
revenue, or Possessory Interest Tax amounts in excess of 
$100,000 in any year (see Comment No. 7). According to 
Ms. Barbara Moy of DPW, DPW is unable to estimate the 
amount of revenue the City would collect from such 
Percentage Advertising Fees. 



1 The proposed Agreement defines Fair Market Value as the unamortized cost of a Fixed Pedestal 
Newsrack unit based on a ten year amortization schedule. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

65 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

In accordance with the previously approved ordinance, 
File 98-515, publishers of newspapers distributed through 
the fixed pedestal newsracks are required to pay to DPW 
a Fixed Pedestal Box Permit Fee of $30 per year for each 
newsrack box. Newsrack box is defined as the individual 
space within a fixed pedestal newsrack unit which 
dispenses a newspaper or other periodical, including the 
door, coin return mechanism and associated hardware. 

The goal of the Fixed Pedestal Newsrack Program is to 
replace approximately 12,000 free standing newsracks 
throughout the City with 1,000 fixed pedestal newsrack 
units containing an average of eight boxes each. As such, 
DPW estimates the permit fees of $30 per newsrack box 
will generate approximately $240,000 per year (1,000 
newsracks x eight boxes each x $30 each). This amount of 
$240,000 payable to the City by the publishers is in 
addition to the $21,000 total one time fee payable by 
Adshel, Inc. to the City. Mr. Dan Brugman of DPW 
reports that the $30 annual box permit fee is intended to 
recover costs incurred by the City to implement, 
administer and enforce the Fixed Pedestal Newsrack 
Program, and DPW may request the Board of Supervisors 
to adjust such fees up or down after the first year when 
the actual administrative costs to the City are known. 

Section 1.13 of the proposed Agreement contains hold 
harmless and indemnification provisions as follows: 

A. "Contractor shall indemnify and save harmless City and its officers, agents and 
employees from, and, if requested, shall defend them against any and all loss, 
damage, injury, liability, and claims thereof for injury to or death of a person, 
including employees of Contractor or loss of or damage to property, resulting from 
Contractor's performance of the Agreement, including but not limited to the use of 
Contractor's facilities or equipment provided by City or others, regardless of the 
negligence of and regardless of whether liability without fault is imposed or sought to 
be imposed on City, except to the extent that such indemnity is void or otherwise 
unenforceable under applicable law in effect on or validly retroactive to the date of 
this Agreement and except where such loss, damage, injury, liability or claim is the 
result of the active negligence or willful misconduct of City and is not contributed to 
any act of, or by any omission to perform some duty imposed by law or agreement on 
Contractor, its subcontractors or either's agent or employee." 

B. "In addition to Contractor's obligation to indemnify City, Contractor specifically 
acknowledges and agrees that it has an immediate and independent obligation to 
defend City from any claim which actually or potentially falls with this 
indemnification provision, even if the allegations are or may be groundless, false or 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

66 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

fraudulent, which obligation arises at the time such claim is tendered to Contractor 
by City and continues at all times thereafter." 

According to Ms. Karikas, the above two indemnification 
provisions, which provide for the Contractor to indemnify 
the City, are standard and serve to protect the City. 

C. "Contractor shall indemnify and hold City harmless from all loss and liability, 
including reasonable attorney's fees, court costs and aD other litigation expenses for 
any infringement of the patent rights, copyright, trade secret or any other 
proprietary right or trademark and all other intellectual property claims of any 
person or persons in consequence of the use by City, or any of its officers or agents, of 
articles or services to be supplied by Contractor in the performance of this 
Agreement." 

Ms. Karikas reports that the above provision related to 
patent rights is a requirement of the Administrative Code 
for contracts such as the proposed Agreement. 

D. "City shall indemnify, protect, defend and hold harmless Contractor from and 
against any and all claims, damages, causes of action, costs and expenses, including 
attorneys' fees, court costs, brought or initiated by any Permit Holder or publisher in 
any way connected with or related to the Fixed Pedestal Units, their operation or this 
Agreement, except where such claims, damages causes of action, costs and expenses 
are the result of the negligence or willful misconduct of the Contractor." 

Ms. Karikas notes that the above provision, in which the 
City agrees to indemnify the Contractor from and against 
any claims brought by publishers, is unique and was 
negotiated as part of this proposed Agreement by DPYV 
because the City permits, regulates and collects fees from 
the publishers and because the publishers relate only to 
the City regarding the fixed pedestal newsracks. 



Comments: 1. According to Mr. Brugman, DPW issued a Request for 

Proposals (RFP) which had three respondents and a five- 
member DPW panel selected Adshel, Inc. in June of 1998 
based on the experience and qualifications of Adshel, the 
fact that Adshel, Inc. was the only respondent to offer a 
share of advertising revenue to the City, and because the 
proposal from Adshel, Inc. was considered to be the most 
responsive to the RFP. The Attachment to this report, 
provided by DPW, is a fist of all companies who responded 
to the DPW RFP. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

67 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



2. As noted above, the subject Agreement allows for 
advertising on the back side of 450 newsracks located in 
the Downtown Area, which is defined as the geographic 
area of the City bounded on the south by the southerly 
line of Berry Street (including the south sidewalk), on the 
westerly line of Polk Street (including the west sidewalk) 
extended north to the shoreline of the Bay and on the east 
to the shoreline of the Bay. 

Currently, State laws and regulations prohibit 
advertisements on Van Ness Avenue. The Agreement 
states that if such laws and regulations are ever amended 
to allow advertising on Fixed Pedestal Newsracks on Van 
Ness Avenue, then the western border of the Downtown 
Area would be changed to the westerly line of Van Ness 
Avenue (including the westerly sidewalk). 

2. Mr. Brugman reports that it is the intention of Adshel, 
Inc. to install lighting on the back side of the 450 
newsracks that contain advertising on the back side, in 
order that the advertisements be visible at night. 
Installation of lighting would require Adshel, Inc. to 
secure additional permits and approvals and to pay 
additional fees to the City's Public Utilities Commission 
and DPW for electricity and sidewalk excavation costs. 

3. Section 2.04 of the proposed Agreement states that the 
City shall designate the locations for all fixed pedestal 
newsracks to be installed by Adshel, Inc. According to Mr. 
Brugman, DPW has identified a list of 650 possible sites, 
contained in Appendix C of the Agreement, within the 
Downtown Area from which Adshel, Inc. may choose to 
locate the 450 fixed pedestal units with advertising. The 
remaining sites, which will number up to 550 and be 
without advertising, will be selected by the Director of 
DPW according to guidelines currently under formulation 
by DPW staff. 

4. As noted above, the proposed Agreement provides that 
Adshel, Inc. would provide, install and maintain up to 
1,000 pedestal mounted newsracks, of which a minimum 
of 450 would be located in the Downtown Area and 450 
newsracks in the Downtown Area would be permitted to 
contain advertising. The City would determine the precise 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

68 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

number of fixed pedestal newsracks without advertising, 
up to 550. According to Mr. Brugman, DPW wants the 
flexibility and control to determine the appropriate 
number of newsracks located in the City, which may vary 
as neighborhoods and pedestrian traffic patterns change. 

5. Mr. Brugman notes that under the proposed 
Agreement, if the Director of DPW finds the content of 
any advertisements offensive, then the Director may 
require Adshel, Inc. to remove the offense advertisement 
from the newsrack. Also, the proposed Agreement 
prohibits advertising of tobacco products or the display of 
any company name producing, selling, or distributing 
tobacco products. 

6. The proposed Agreement would reserve 35 fixed 
pedestal units, with locations to be determined by the 
City, for the display of public service advertisements. 

7. The proposed Agreement includes a provision which 
would cap the Possessory Interest Tax at $100,000. The 
Assessor's Office currently places a value on public rights- 
of-way on which the fixed pedestal newsracks will be 
located at $76,000. In the event the total Possessory 
Interest Tax due to the City exceeds $100,000, the excess 
shall be credited against payments made by Adshel, Inc. 
to the City for the Percentage Advertising Fee. 

Recommendation: Approval of the proposed resolution is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

69 



i^/ii/iysb 10: 5S 4155546944 



City and County of San Francisco 



DPW DIRECTORS OFFICE 




Willie Lewis Brown, Jr., Mayor 
Mark A. Primeau, AIA, Director and City Architect 



Attachment 

(415) 554-6920 

FAX (415) 554-6944 

http://www.sfd pw.com 



Department of Public Works 
Office of the Director 

875 Stevenson Street, Room 410 
San Francisco, CA 94103-0934 



MEMORANDUM 



Date: December 11,1 998 

To: Harvey Rose 

Budget Analyst* 

From: Daniel Brugmann §r? 

News Rack Program Manager 

Re: Response to the RFP 

We received RFP submittals from the following: 

Adshel Inc. 

City Solutions 

San Francisco Newspaper Agency 

If you have any further questions, please do not hesitate to call me at 554-6917. 



•IMPROVING THE QUALITY OF LIFE IN SAN FRANCISCO' We are dedicated indivrduaix committed to teamwork. 

customer service and continuous improvement in partnership with the community. 

Customer Service Teamwork Continuous Improvement 



70 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

Item 12 - File 98-2063 



Item: 



Hearing to consider the Budget Analyst's follow-up 
review of the Budget Analyst's 1995 Management 
Audit of the Tax Collector's Office. 



Description: 



In April of 1995, the Budget Analyst completed a 
Management Audit of the Tax Collector's Office, 
which included 11 findings and 81 recommendations. 
In November of 1997, the Board of Supervisors 
directed the Budget Analyst to conduct a follow-up 
performance review of the Tax Collector's Office to 
determine the progress and status of the 
implementation of the recommendations contained in 
the Budget Analyst's Management Audit Report of 
1995. The Board of Supervisors requested both the 
1995 Management Audit and the Follow-up Review 
in order to assist the Tax Collector in his efforts to 
improve the efficiency and effectiveness of his Office. 

The Follow-up Review, dated December 1, 1998, 
which was recently issued to the Board of 
Supervisors, identifies each of the Budget Analyst's 
recommendations made in 1995 and discusses the 
Tax Collector's progress in implementing each of 
these recommendations. In addition, further 
recommendations to improve the efficiency of 
operations, improve internal controls, reduce costs 
and increase revenues are included. 



Our report found that the Tax Collector's Office has 
fully or partially implemented 54 of the 81 
recommendations made by the Budget Analyst in the 
1995 Management Audit Report and that the Tax 
Collector has made significant progress in solving 
the problems identified at that time. In fact, the 
number of registered businesses in San Francisco 
has increased from 57,885 in FY 1994-95 to 70,467 in 
FY 1997-98, an increase of 12,582 businesses, or 
approximately 22 percent. Business Payroll and 
Gross Receipts Taxes and Business Registration Fees 
have increased from $159,020,000 in FY 1995-96 to 
$225,745,000 in FY 1997-98, an increase of 
$66,725,000, or approximately 42 percent, since the 
audit was completed. While the Tax Collector and 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

71 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



the Budget Analyst acknowledge that these 
percentage changes during these periods are related 
to San Francisco's economic growth, the Tax 
Collector also acknowledges that, although the 
specific amount cannot be separated, " a substantial 
percentage must be linked to improvements enacted 
in accordance with the 1995 Audit 
recommendations". 

This Follow-up Review also contains a written 
response from the Tax Collector's Office and from the 
Animal Care and Control Department, which 
addresses Section II. 2: Dog Licenses discussed in the 
report. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

72 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

Item 13 -File 98-1719 



Department: 
Item: 



Description: 



Tax Collector 

Resolution urging the Tax Collector to conduct an audit of 
Transient Occupancy Tax (Hotel Tax) payments to the 
City from 240 San Francisco Single Room Occupancy 
(SRO) hotels with 50 or fewer units. 

According to Mr. Richard Sullivan, Tax Collector, Single 
Room Occupancy (SRO) hotels are composed of rooms that 
are single person occupancy only and rented to guests on 
a hourly, weekly or monthly basis. Mr. Sullivan states 
that all hotels in San Francisco are required to reimburse 
the City for the Hotel Tax charged on each hotel room at 
the daily rate of 14 percent for guests who stay at the 
hotel for less than 30 consecutive days. The exception to 
this requirement is hotel operators renting 
accommodations to guests at less than $30 per day or 
$100 per week. Mr. Sullivan states that payments from 
the Hotel Tax to the City are required to be remitted on a 
monthly basis. If such payments are not remitted within 
30 days of the scheduled monthly payment date, then a 
penalty of 20 percent of the delinquent payment and 
interest at 1 percent are imposed each month that the 
payments remain delinquent, in addition to the base 
Hotel Tax monies due. 



Mr. John Madden of the ControDer's Office states that in 
FY 1998-99, Hotel Tax is projected to generate revenues, 
totaling $163,580,035, for the City. According to Mr. 
Sullivan, $160,036 of the total Hotel Tax of $163,580,035 
is generated from SRO hotels with 50 or fewer units. 

Mr. Sullivan reports that the internal controls pertaining 
to revenue collections by the operators at SRO hotels with 
50 or fewer units are sometimes inadequate, which, in 
turn, may lead to the underreporting of Hotel Taxes due 
to the City. 

Approval of the proposed resolution would urge the Tax 
Collector to conduct an audit for the approximately four- 
year period from October 1, 1994 to September 10, 1998 of 
a representative sample of 48, or 20 percent, of the 240 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

73 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



SRO hotels in the City with 50 or fewer units to 
determine whether or not those hotels have fuUy paid all 
Hotel Taxes which are due to the City. 



Comments: 



1. Mr. Sullivan reports that presently 47, or 19.6 percent, 
of the 240 SRO hotels owe the City $47,843 in delinquent 
Hotel Taxes plus $5,054 in penalties and $6,891 in 
interest charges for total delinquent charges of $59,788 
owed to the City. 



2. Mr. Sullivan advised the Budget Analyst that the 
subject audit would be conducted with existing staff. 
Based on an estimate of 768 to 864 hours to complete the 
proposed audit, the total estimated cost of the audit would 
range from $119,969 to $134,965, according to Mr. 
Sullivan, but as previously noted, the audit would be 
conducted with existing staff, within the Tax Collector's 
existing budget. 

3. The attached memo from Mr. Sullivan discusses 
potential revenue collections from the proposed subject 
audit. 



Recommendation: 



Approval of the proposed resolution is a policy matter for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

74 



DEC-10-1998 11:37 SF BUSINESS TPX P. 02/02 

Attachment 



Out of 10% sampling, 29% is paying and 71% non-paying ( Non-paying because Hotel Operators 
claimed for Hotel Tax exemptions per Sec. 506, Article 7 of the SF. Hotel Tax Ordinance). 

Of total population of 10% sampling (24), only 29% is paying, the equivalent of 7 accounts (7/24=. 29) 
Extrapolated, out of 240 accounts, approximately 70 accounts arc paying. 

Given the above information, it is not easy to estimate the collection to be realized as a result of the audit 
because the proposed subject audit may come up to a zero audit or in other words, the audit may result 
in a findings that majority of the Hotel Operators is in complete compliance with the Hotel Tax 
Ordinance. 



75 



TOTAL p. 02 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

Item 14 - File 98-1923 

Note: This item was continued by the Finance Committee at its meeting of 
December 9, 1998. The City Attorney's Office has requested that this item 
be heard in closed session. 



Departments: 
Item: 



Location: 

Purpose of 
Lease Agreement: 



Lessor: 
Lessee: 

No. of Square Feet: 



Term of Lease: 



Rental Payment 
from Lessee to City: 



Recreation and Park Department (RPD) 

Resolution approving the first amendment to the lease 
between the City of San Francisco and the Golden Gate 
Yacht Club (Club) (a) to reduce the rental rate from 10% 
to 7.5% of gross monthly revenues, representing a 
reduction of 25% payable by the Golden Gate Yacht Club 
to the City, and (b) to reduce the lease term from 40 years 
to 30 years. 

Marina Yacht Harbor 



To operate and recreational boating and racing oriented 
yacht club. 

City and County of San Francisco 

Golden Gate Yacht Club (the Golden Gate Yacht Club) 

Under the terms of the original lease agreement, the 
subject property consists of a total land and water area of 
31,256 square feet. 

The current term of the lease is 40 years, commencing 
June 1, 1992 and terminating on May 31, 2032. The 
proposed lease amendment would reduce the current term 
of the lease by 10 years, from 40 years to 30 years, 
expiring on May 31, 2022. 

Under the original lease, the rental rate is 10% of gross 
receipts. The proposed rental rate is 7.5% of gross 
receipts. 

Attachment 1 provided by Mr. Ernie Prindle of the 
Recreation and Park Department contains the annual 
gross revenues and annual rental payments due from the 
Club to the City over the past five years under the rental 
rate of 10% and the projected annual gross revenues and 
projected rental payments due from the Club to the City 
under the proposed rental rate of 7.5% for the remaining 
23 years of the proposed reduced lease term. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

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Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



Fair Rental Rate 
Adjustment: 



Description: 



Based on the data contained in Attachment 1, Mr. Prindle 
projects, that over the remaining 23 years of the proposed 
reduced lease term, the City would receive $734,841 less 
from the Club at the proposed rental rate of 7.5% than the 
City would receive at the wasting rental rate of 10%. 



Under the proposed amended lease, the rent would be 
adjusted to fair market rent on June 1, 2002 and on June 
1, 2012. Mr. Prindle, states that he is unable to project 
the fair market rentals at those times and whether such 
adjustments to the fair market rentals will result in 
higher or lower rental rates. 

The Golden Gate Yacht Club is a nonprofit operation 
which, under the terms of the original lease provides a 
"clubhouse with amenities for family type participation," 
"a meeting room and dining facilities," for the "use of 
marine oriented organizations," "yacht club functions," 
and "banquet and event functions." In April of 1992, the 
Board of Supervisors adopted Ordinance No. 25-92 which 
approved a lease between the Golden Gate Yacht Club 
and the City and County of San Francisco for the purpose 
of operating a yacht club. 

On April 10, 1997, the City gave a notice of default to the 
Golden Gate Yacht Club regarding certain alleged 
breaches by the Golden Gate Yacht Club of its obligation 
under the Lease to pay percentage rent, install and 
maintain bookkeeping and accounting methods, maintain 
adequate books and records and provide auditors reports 
to the City. The Golden Gate Yacht Club disputes all of 
these allegations. 

The Club now reports that the 10% rental rate, to which 
it had previously agreed on in the existing lease, was too 
high. According to Mr. Prindle, the Golden Gate Yacht 
Club presently owes the City approximately $200,000 in 
back rent. 



To settle these claims, Mr. Ernie Prindle of the RPD 
advises that the proposed lease amendment would 
authorize a reduction in the rental rate from 10% to 7.5% 
of monthly gross revenue, but would also reduce the term 
of the lease by ten years, from 40 years to 30 years. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

77 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 

Comments: 1. Attachment 2 is a memo provided by Mr. Prindle 

pertaining to the justification for reducing the proposed 
monthly rent payable to the City by 25% from 10% to 
7.5%. Notwithstanding this justification, Mr. Prindle has 
estimated a loss of $734,841 in rental revenues to the City 
due to this proposed rental rate reduction. 

2. As previously noted, the proposed legislation, in 
addition to reducing the rent payable to the City, would 
also reduce the terms of the lease by 10 years. However, 
in response to inquiries made by the Budget Analyst, Mr. 
Prindle could not state that a new lease would not be 
made with the Golden Gate Yacht Club at the end of the 
proposed reduced term of 30 years. 

3. An independent appraisal dated August 28, 1997 
was performed to determine the fair market rental rate. 
Comparables used were deli and port restaurants, with 
percentage rent ranging from 7% to 11%. As restaurants, 
these comparables do not address the other aspects of the 
Club beyond the Club's restaurant. The -appraiser 
concluded that a market rental rate of 9% of gross 
receipts would be reasonable. Subsequent to the first 
appraisal, the Department of Real Estate requested 
another review of the matter, in response to which a 
supplemental addendum letter from the same appraiser 
dated November 25, 1997 was subsequently presented to 
the Recreation and Park Department, finding that the 
proposed rental rate of 7.5% would be reasonable, 
assuming a food and beverage operation that is subject to 
the Yacht Club's membership rules and regulations. (See 
Comment 5). 

4. Mr. Tony Delucchi, Director of Real Estate stated 
that the appraiser was retained by the Department of 
Real Estate on behalf of the Recreation and Park 
Department. However, Mr. Delucchi states that he was 
not involved in the appraisal which served as the basis for 
the proposed rental rate reduction. 

5. Attachment 3 is a copy of the addendum letter from 
the appraiser which responds to the "subsequent request" 
by the Real Estate Department to determine "whether or 
not a rent of 7.5% of food and beverage sales was 
reasonable, assuming an operation that is impacted by 

BOARD OF SUPERVISORS * 
BUDGET ANALYST 

78 



Memo to Finance Committee 

December 16, 1998 Finance Committee Meeting 



Recommendation: 



sales generated by membership only and no public 
access." 

Disapprove the proposed resolution. The Budget Analyst 
has not been provided with sufficient factual information 
which would justify a 25 percent reduction in rent payable 
by the Golden Gate Yacht Club to the City. As noted 
above, presently the Club is delinquent in the amount of 
$200,000 in its rental payments to the City. 



/Harvey M. Rose 



cc: Supervisor Teng 
President Kaufman 
Supervisor Newsom 
Supervisor Ammiano 
Supervisor Bierman 
Supervisor Brown 
Supervisor Katz 
Supervisor Leno 
Supervisor Medina 
Supervisor Yaki 
Supervisor Yee 
Clerk of the Board 
Controller 
Gail Feldman 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

79 



Sheet9 



Attachment 1 



Year 


Annual 

Gross 

Revenue 


Rent at 10 
Percent 


Rent at 7.5 
Percent 


Difference 



1993-94 
1995 
1996 
1997 
1998 



840,691 
598,744 
623,861 
638,036 
664,804 



84,069 
59,874 
62,386 
63,804 
66.480 



63.052 
44.906 
46,790 
47,853 
49,860 



1 999-2022 $26.027.507 $2.602,751 $1.952,063 



21,017 
14,969 
15,597 
15,951 
16,620 
650,688 



Total $29,393,643 $2,939,364 $2,204,523 $ 734,841 



Notes/Assumptions 

•Gross revenue includes deduction for SBA loan payment 

*1 993 Gross Revenue is for period March through December. 

*1998 Gross Revenue includes 10 months actual and straight line projection for two months 

*1 999-2022 Gross Revenue assumes 4 percent increase per year based upon 1998 Grass Revenue 

as base. 2022 Includes Gross Revenue only for 5 months. 



Page 1 



TOTfiL P. 01 



80 



City and County of San Francisco 



Recreation and Park Department 

Attachment 




December 10, 1998 

TO: 

FROM: 

RE: Golden Gate Yacht Harbor 



Budget Analyst fj 



You have asked for a justification for the proposed reduction In rent for the Golden 
Gate Yacht Club from 10 to 7.5 percent to of gross receipts. This reduction is based 
on an independent appraisal of the fair market rent for the property in question 
conducted through the Real Estate Department. To offset this reduction in rent for 
the first ten years of the lease, the Club has agreed that the rent would be adjusted 
to the fair market rent in the years 2002 and 201 2 This modification will insure that 
the City receives a fair rent for the entire term of the lease. Moreover, the lease term 
v\ould be reduced from 40 to 30 years, which is favorable to the City. 

Please let me know if you need any further information on this issue. 



McLaren Lodge, Golden Gate Park 

501 Stanyan Street 

San Francisco, CA 9411 7-1 SM 



FAX: (415)&31-20» 
Phone:(415)831-2700 



81 



Dhc-id J- 1 y y a it>-u 



bt" KfcL. rHKK 



-»*^ v»»«; 3C^D f.BJ^tfb 



£ra/si & >4ssocm res, /nc 

Hospitality *nd Real Estate Consuttinf and Appmta] Services 



Attachment 3 
Page 1 of 3 



November 25, 1997 



Ms. Suzanne Mellca, MAI 

HVS Intenudoaal 

116 New Montgomery Street, Suite 620 

San Francisco. CA 94105 

Dor Ms. Mellca: 



Ernst & Associates is pleased to present this ndrfcrifhiTw letter, summarizing our major conclusions, 
findings and recommendations in connection with an analysis of comparable rents for the first 
floor of the Golden Gate Yacht Club, located in San Francisco, California. This addendum lens- 
is subject to all of the major assumptions and/or limiting conditions set forth in our executive letter 
dated August 28, 1997. 

Baekprnnad »wd Ohj««rtw«« 

The City and County of San Francisco, a Municipal Corporation, acting by and through the 
Recreation and Park Commission (Lessor) leases the Golden Gate Yacht Club dining and banquet 
facilities to the Golden Gate Yacht Club (Lessee). The facilities are comprised of a two-story 
building which is located on the San Francisco Marina, near the St Francis Yacht Club. The City 
of San Francisco would like to know what the market rent would be if they leased back the 
downstairs portion of the building from the yacht club operator. 

Originally, we confirmed with Mr. Harry Quinn that the City was interested in determining a flat 
rent, on a per square foot basis, not impacted by the constraints of a yacht club operation (Lc, 
sales generated by membership only and no public access). The findings of our original work was 
documented in a separate report. 

This addendum letter responds to a subsequent request by Mr. Quinn to determine, if 
possible, what other yacht club food and beverage lease terns were and whether or not a 
rent of 7.5% of food and beverage sales was reasonable, assuming an operation that Is 
impacted by sales generated by membership only and no public access. 

Seop^ofWarfc 

We attempted to identify comparable facilities for purposes of our analysis. Our research included 
telephone calls to the following: 

■Mhlined With: 
Ceri K. Eisley. MM 
Easier * Auocvate* 
100 Chaparral Cou/t Suae 226 
Anaheim HiiU. California 93«0*JZJ* 



Susan L f/rut JCMa 
2402 Vineyard Road 
Novates. California 9*947 
4J5fl9*05M FAX 41 S 993-0679 



82 



DEC-03-1998 16=34 SF REC PHKK ~- — ~o -.«~«, 

Attachment 3 
Page J 2 o£ 3 

HVS International 

November 25, 1997 



Katherine McDennott, Dept. of Real Estate, Port of Long Beach 

Jim Rice, Dept. of Marine leasing. Port of Seattle 

Gail Wasil, Superintendent of Leasing, Port of Long Be*ch 

Yvonne Clark, Dept of Beaches and Harbors, Los Angeles County 

David Sandoval. City of San Diego Port District 

Dennis White, Port of Oakland 

Maria Sm^rtr, pro per ty Management Department, Port of Los Angeles (San 

Pedro) 

Manager, Corinthian Yacht Chm, Tiburon 

Jim Dickson, Treasurer, Loch Lomond Yacht Club, San Rafael 

Manager, Inverness Yacht Club 

California Yacht Clubs, Southern California 

The majority of the yacht clubs contacted would not respond to our request or mriicavrf that they 
were unwilling to share data with us. The manager of the Corinthian Yacht Club indicated that 
they do pay a base minimum rent, plus a percentage rent, but was unwilling to divulge the actual 
amount. He indicated that to his knowledge, they were the only club in Marin County that leased 
the food and beverage facilities. 

Mr. Rice at the Port of Seattle indicated that based on his experience, a rent that equated to about 
6% of food and beverage sales was equitable. 

Katherine McDennott mentioned that the North Harbor Restaurant, Port of Long Beach, which 
closed last month, catered to longshoremen and businessmen. This restaurant was not a tourist- 
oriented restaurant and did not have a "water theme". They charged the tenant 8% of food and 
beverage sales. 

Gail Wasil, Port of Long Beach, indicated that all recent restaurant deals which involved city- 
owned buildings called for rent in the range of 6.5% to 8% of food and beverage sales, depending 
on specific lease criteria. The base rent was calculated on 7.5% of 75% of projected revenues. 

During our original study, we concluded that rents were based primarily on a return on gross sales, 
and seco n da ri ly on a per square foot basis. The coraparables indicate a fairly consistent range of 
rents, presented as a percentage of gross sales, ranging from 7% to 11%. Rents for full-service 
restaurants most frequently fall within a range of 6-8% of total sales. Limited-service restaurants 
and retail operations fall within a range of 9% to 1 1% of sales. We determined that the most 
reasonable way to estimate rent would be to first estimate sales; calculate rent as a percentage of 
gross and translate that into a rent per square foot 

During our original study, considering all factors, and assuming that the tenant was not 
impacted by the yacht club membership roles (Le^ access to the poblic) we concluded that the 
market rent for the Golden Gate Yacht Club' s first floor would be reasonably stated at about 9% of 
gross sales or Si. 70 per square foot, whichever is greater. 

Based on the input, as presented above, we believe that rent based on 7 .5% of food and beverage 
sales is reasonable, assuming a food and beverage operation that is inbject to the yacht club's 
membership, rules and regulations. 



Ernst & Associates, Inc. 

83 



DtC-03-1998 16: 34 



SF REC PARK 



HVS InternjoiooaJ 
November 25, 1997 



415 831 2099 P. 05/06 
415 552 921S P.05>06 

Attachment 3 
Page 3 of 3 



Shouid we receive any farther data or im^ *»* «_ 



It has been 



-^C&JS^^-^^ We 
— ****** ^"w «° genu ufxMi your regn ea t, 

E M Pft-tfiiBy a*fa*aJ Bed , 



are available to discuss this 




Susan L. ErosUSHC 
President 



Emst & Associates, Inc. 

84 



BOARD of SUPERVISORS 




401 Van Ness Avenue, Room 308 

San Francisco 94102-4532 

Tel. No. 554-5184 

TDD No. 554-5227 






^NOTICE OF CANCELLED MEETING 

f INANCE COMMITTEE 
SAN FRANCISCO BOARD OF SUPERVISORS 















NOTICE IS HEREBY GIVEN That the regularly scheduled Finance 
Committee meetings of Wednesday, December 23, 1998 and 
Wednesday, December 30, 1998, at 1:00 p.m., at 401 Van Ness Avenue, 
Room 410, have been^canceJlecL-^ 

Gloria L. Young^"^ CJ 
Clerk of the Board 




Posted: 12/17/98